Humphrey, in response to a recent article in Money Magazine about just how low savings rates are among all generations of Americans, outlines alternatives that put the saver back in the driver’s seat.
“We have had a perfect storm of bad news over the last 10 to 15 years.” Humphrey explained. “First, we had the stock market plunge, then we watched the real estate and mortgage market implode. Both of these were exposed as having been built on sand.”
An online Money Magazine article from April 16, 2016 points out two very disturbing trends. “45% of boomers have zero retirement savings…” And, if that weren’t ominous enough, the article continues with “…And of those who have saved, only a little more than half have as much as $100,000 stashed away.”
Dave Ramsey and most other well-known financial authorities are not talking about riskier investments. They are talking about doing creative things to increase both savings and income. Things that are totally different from the “normal” things we hear every day.
In his bestseller, “The Total Money Makeover,” Ramsey says, “You must walk to the beat of a different drummer. The same beat that the wealthy hear. If the beat sounds normal, evacuate the dance floor immediately! The goal is to not be normal, because as my radio listeners know, normal is broke.”
Humphrey recommends a three-pronged approach that focuses on creative but safe solutions to savings, income, and insurance issues. Gone are the days when people that were behind on their savings could depend on their home value to act as a safety net. With interest rates stuck at record lows and right on the brink of going negative, (meaning the banks start charging you to save your money for you, already a reality in Japan,) that seems to point to only high-risk investments as a viable alternative.
Humphrey empathically zeroes in on a very necessary reality check, “…Back in the 2000’s there was a whole revolution of people refinancing their homes, getting an interest only loan and then taking that home equity and instead of reinvesting it, they went out and bought a boat with it. “
Even with this sobering reality check, Humphrey points out again and again that there really is hope as well as opportunity. Humphrey continues “As corporate America continues to downsize their work force, talented Americans are honing their entrepreneurial skills and starting new businesses in record numbers. Income replacement will be the saving grace for many who are fortunate to stay healthy.”
Jody Humphrey is a twenty-five year veteran in financial services. Instrumental in the launch of two previous firms in the industry, both now multi-billion dollar market cap enterprises, Jody along with his father, Hubert Humphrey are in the start-up phase of their third enterprise, Hegemon Group International. To learn more about Jody and HGI visit JodyPHumphrey.com or email JodyHumphrey@lfsmax.com.