Baby Boomer – Financial Planners using 3-6-9 Bogus numbers

Many in the financial planning industry have what is called the 3-6-9 method for calculating a Baby Boomers retirement income. What do the numbers mean? They assume there is 3% inflation, 6% return on fixed interest and 9% return on equities.

They plug these bogus numbers into their models and add a bit of risk profiling, asset allocation and some diversification and then present it to Baby Boomers as a matter of fact. This is all voodoo financial planning using assumed numbers.

It is explained very well in three videos I think you should see by Dr Larry Parks. I am not a gloom and doom merchant, just a realist. I want to use real historical numbers in the absence of future actual numbers, not bogus averages. See my FREE Report posted here two days ago called What if You Retired in 2000?

Dr Larry Parks explains many things besides these bogus number in his videos. On the third video he talks about the incredible growth in derivatives and tells us Bank of America, CitiBank and J P Morgan held the majority of them in the USA. What makes this important is the video was created before the sub prime crisis surfaced as far as I can tell from some of the charts he uses.

Anyway have a look and please comment on them in this post if you wish to do so.

I’ll take you to the videos on You Tube rather than load them here:

The Attack On Retirement Savings Pt. 1

The Attack On Retirement Savings Pt. 2

The Attack On Retirement Savings Pt. 3

I find much of what Dr Parks says very hard to take but I believe we need to consider it. He appears to have researched his subject well and even if we don’t agree with it we should respect what he is telling us.

You can read more on Dr Larry Parks on his web site FAME.

Regardless of what you think about Dr Larry parks and his videos make sure your financial planner does not use the 3-6-9 method for your retirement planning.

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