Published on Amazon Kindle March 9,2009
Copyright 2009 Ramsay Mameesh All Rights Reserved
This book is dedicated to my father. It took me a while to get it Dad, but I finally did, thank you.
The Wall Street theatre is filled to capacity tonight. Bankers in tuxedos and men in overalls, share the auditorium, and respond to the act they are witnessing with the same sense of awe. Roars of astonished approval and clapping repeatedly echo through out the hall. As this evenings show has lived up to its billing. The poster hung by the entrance, features two well dressed and serious looking men, and promises everyone “The Most Amazing Show on Earth”. Mr. Greenspan and his young assistant Ben Bernanke, will perform “Feats of Financial Folly”, watch as entire economies disappear before your very eyes. Open to the public - everyone welcome. Price of admission - your life savings. Join us now as we enter the theatre to watch the final act of this most incredible act. The audience has seen some amazing things already, and sensing the climax are all hushed, as the amazing Mr. Greenspan addresses the audience.
“Ladies and gentlemen, you have seen how our volunteer from the audience, and everyone let’s give Mr. America a round of applause, gave us one dollar. Which he kindly removed from his wallet at the beginning of the show.” Everyone politely claps for Mr. America. The Amazing Greenspan continues, “And you all saw how my trusted assistant Mr. Bernanke, please everyone if you don’t mind, a show of appreciation for the efforts of Mr. Bernanke, took Mr. America's dollar and placed it into this solid box.” The audience murmurs and nods. Another volunteer, a man who appeared to be a banker by trade, had been summoned from the audience to examine the box, and had declared it to be solid and empty. “And ladies and gentlemen, you witnessed did you not, how with a few magic spells, when the box was re-opened, Mr. America’s one dollar bill had magically turned into a one hundred dollar bill?” Mr. Greenspan, ever the show man, loudly exclaims to the incredulous audience as they cheer and hoot their approval. Mr. Bernanke beams on the sideline and dreams of one day being as skilled a performer as the old master. Mr. Greenspan quiets the crowd and lowers his voice solemnly. “Now I shall perform the grand finale of the evening. Mr. America if you would be so kind as to allow me your services for one final trick?” Mr. America steps back onto the stage, flushed with excitement, the one hundred dollar bill remains in the box. “Mr. Bernanke, if you would please bring over the magic box, and Mr. America if you would kindly open your hand.”
The Amazing Greenspan proceeds to lift open the box and deftly removes the one hundred dollar bill. Taking the one hundred dollar bill between the fingers of his two hands, the Amazing Greenspan holds the bill up in the air, and allows the audience plenty of time to appreciate the reality of the note. “Now Mr. America,” the Amazing Greenspan says rather heavily as he tries to get the attention of his volunteer. Mr. America, his eyes fixated on the one hundred dollar bill, imagines all the things he can buy with the money, and deafly nods in agreement. “This is a one hundred dollar bill, is it not?” asks the magician. “Uh-huh.” Comes the reply. Not a very intelligent response, but understandable, given the circumstances. “I am going to place this one hundred dollar bill into your hand, if you could please turn and face the audience so everyone can see me place the one hundred bill into your open hand, excellent, excellent, right there, both hands open and level if you please, perfect Mr. America.”
As Mr. America faces the audience, his sweaty trembling hand opened and empty, Mr. Greenspan neatly folds the one hundred dollar bill in order to fit it snuggly into his palm. Sensing the impatience of the audience, the amazing Greenspan quickly places the bill into Mr. America’s hand, and instructs him to close it tightly. “Mr. America, can you feel the one hundred dollar bill in your hand?” He asks a visibly excited volunteer. “Yes, yes, I can!” A smiling Mr. Greenspan produces a cane and waves it over the hand holding the note. “I am now going to recite a short magical statement.” Squinting very hard, and holding the cane over Mr. America’s trembling hand, the financial sorcerer casts his spell. “Economy fluxo, liquidity transparente, inflation alto digitatus, recession imminente!” His words echo through the room, no one in attendance quite understands their meaning, its a language known only to the wise one.
With a moment of silence for added effect, the distinguished crowd edges up on their seats, and crane their necks for a better view. “Would you please open your hand Mr. America.” Instructs the Amazing Greenspan. Hesitating for only a moment, not sure what to expect, Mr. America does as he is told. An audible gasp engulfs the room, Mr. America looks down at his hand. “But, but, it’s gone.” Mr. America semi-coherently begins mumbling. And as rehearsed, the Amazing Greenspan’s assistant Bernanke rushes forward, beside a befuddled Mr. America, and gestures toward the master. “Ladies and gentlemen - the Amazing Greenspan!” The audience is stunned, they have never seen a trick such as this, this is indeed magic! Not wanting to appear fools, they rise from their seats and cheer wildly, as the Amazing Greenspan takes a slow bow.
The curtain begins to descend, lights begin to illuminate the hall, and Mr. Greenspan rises from his bow. Mr. America has not moved, not even a twitch, still mumbling incoherently, “but, but, I had the hundred dollars in my hands.” Mr. Greenspan places his hand into the open and empty hand of Mr. America, and thanks him for his participation, as he gives it a quick shake. Meanwhile Mr. Bernanke thanks the crowd, “Thank you ladies and gentlemen, thank you, be sure to catch us next month when we appear in Shanghai, tickets are still available. Drive safely. Goodnight.” The Amazing Greenspan has already stepped behind the curtain. As Mr. Bernanke, before making his way to join the master, leads Mr. America to the edge of the stage and likewise thanks him for volunteering. The crowd collects their coats and purses, checking the seats for any coins that may have fallen from their pockets, and a confused and shaken Mr. America makes his way back to his seat. Mrs. America, is already standing in the aisle when Mr. America arrives, their belongings neatly gathered in her arms. “It was their, right their in my hands, the hundred dollar bill?” He says to his wife while gesturing at his empty palm. “Yes, dear, should we be going now?” Responds Mrs. America.
Mr. and Mrs. America join the crowd exiting the theatre. As they leave and make their way towards the subway, members of the audience, can be heard exclaiming “One hundred dollars disappearing from a mans hand! Incredible, just incredible, never seen anything like it!” Others, recognizing Mr. America, give him a hearty pat on the back and congratulate him for a “Job well done.” As they head down the subway stairs and toward the turnstiles, Mrs. America turns to Mr. America and asks, “Honey, where’s our dollar bill?”
Wall Street uses a simple formula that creates tremendous profits by turning generations of Americans into wage slaves. The Wall Street formula is designed to insure that working Americans can never acheive financial freedom.
The formula is not a secret. Almost every financial planner, money manager, mutual fund company, bank, 401k administrator, and others associated with Wall Street knows and uses the formula. Wall Street does not try to hide the formula, quite the opposite, it spends money advertising the formula on t.v. and the internet. The formula is regularly quoted in financial magazines, newspapers, and books. More than likely you already know the formula. The formula that keeps you and every other American working, the formula that makes Wall Street rich and turns you into a wage slave, is the formula used to calculate your necessary retirement savings.
You need enough retirement savings to support spending each year in retirement the equivalent of 80% of your current salary.
This well known Wall Street formula, forces the typical American worker to save a million dollars more than necessary for retirement, and work at least ten extra years before they can retire. What does a retirement formula have to do with your financial freedom? Retirement is the point when you no longer have to work to survive or support yourself. Retirement is financial freedom. By making retirement impossible, Wall Street guarantees that you will never achieve financial freedom, and will be forced into a life of perpetual wage slavery. Forced to keep paying Wall Street commissions and fees.
In "Million Dollar Difference" you will learn:
This simple and easy to understand Amazon Kindle book will free you from a life of wage slavery, giving you the knowledge and tools you need, to control your financial future and achieve financial freedom.
For the average American couple with a combined salary of $80,000 per year, The Wall Street formula calculates based on their salary, that the couple will need $1,600,000 to retire. If the same couple creates a retirement budget, and determines that in retirement they will need to spend $2,250 per month, the couple will only require $600,000 in retirement savings. A million dollar difference!
What if the couple already has $600,000 in savings, enough to retire on their $2,250 budget, how much longer will they have to unnecessarily work because of the Wall Street formula? If they save $1,000 per month towards retirement, earning a 7% rate of return, to save the additional $1 million will require 12 more years of working. They will spend 12 more years commuting, 12 more years in a cubicle, 12 lost years that could have been spent in retirement. A dozen more years paying Wall Street commissions and fees.
Every month for the next 12 years, that they needlessly save $1,000 towards their retirement, Wall Street takes a piece. Mutual funds, money managers, 401k plans, financial planners, charge you varying fees and commissions to "help" you invest your savings. Multiplied by tens of millions of fellow working and saving Americans, Wall Street makes billions of dollars in profits every year, by keeping Americans working.
Millions of Americans are working right now who could otherwise be retired. Millions more are closer to achieving financial freedom than they realize. The latest 2007 U.S. Census Report on Household Net Worth, revealed that there were 15 million American households with a net worth over $500,0000, 15 million Americans who could or were close to being able to retire. With the economic collapse soon following the report, that number has inevitably decreased, even so there are still millions of Americans who can stop working today.
As shocking as the over-estimation of required retirement savings produced by the Wall Street formula is, it is not how Wall Street turns you into a wage slave, to do that they use your salary.
If 80% of your salary is too high, to use for estimating your retirement savings needs, then what is the correct percentage to use? Is it 70%? 60%? 50%? Answer: None of the Above. When it comes to planning your retirement savings needs, calculating how much savings you need to achieve financial freedom, your salary is completely irrelevant. Wall Street has no idea, nor do they care, how much savings you actually need to safely retire.
Here is what the non-partisan Congressional Budget Office wrote in their 2004 report ,"The Retirement Prospects of the Baby Boomers", after they researched retirement planning methods. "The Congressional Budget Office (CBO) recently reviewed the research that has been conducted over the past decade on the retirement prospects of aging Americans.(2) That review reveals a mixed picture of boomers' futures. Because retirement preparations are largely a matter of personal choice, there is no widely accepted standard of what constitutes an adequate or appropriate level of retirement income or consumption. In the absence of a single standard, researchers have used a number of different measures to assess the adequacy of retirement preparations; and the application of a variety of measures produces a variety of conclusions."
Translated: The government wanted to know how much money baby boomers will need to retire. They researched the previous ten years of retirement industry studies and reports, to try and find the correct method and formula to determine both, how much savings boomers will need to retire, and how much boomers will need to spend in retirement. Their conclusion: Wall Street has no idea.
The 80% figure is pure fiction. A high percentage, insures that you will need to save more, and work longer than necessary. If the couple earning $80,000 per year used 60%, instead of 80% of their current salary to calculate retirement savings needs, then they would require $1,200,000 instead of $1,600,000 to retire. A $400,000 difference! And still, it is a worthless guess, for how much you actually need. Remember, the couple only needed $600,000 to retire, with a $2,250 per month spending budget. Even when a lower percentage of salary is used, the couple is still forced to save twice as much, as they actually need to retire.
The formula Wall Street uses to calculate your retirement savings needs is an inaccurate over-estimation. Again, as shocking as that may be, over estimating your retirement savings needs is not how Wall Street turns you into a wage slave. A high percentage is just being greedy. You can lower the percentage and still never be able to retire. In the next chapter, "The End of Wage Slavery", you will learn how the Wall Street formula turns you into a wage slave. One last point about your salary.
Who cares how much you make? You could earn $200,000 per year, spend it all and have no savings, and be unable to retire. Or you could earn $55,000 per, have a net worth of $750,000, and be able to retire today. Your salary is irrelevant.
You are about to gain the key that unlocks the formula Wall Street has used to keep generations of Americans in perpetual wage slavery. The purpose of using a percentage of your salary, is to insure that no matter how successful you become, you will not be able to achieve financial freedom. The Wall Street formula is designed to punish success. Here is it how it works:
The couple earning $80,000 per year, using the 80% Wall Street formula, needs $1,600,000 to retire. Next year, they both get a 5% raise, that's too bad. Because of their raises, the amount of savings they need to retire, has gone up to $1,680,000. Due to a 5% raise, on an $80,000 salary, they are going to have to save an additional $80,000 dollars towards retirement. How long is it going to take for a couple earning $80,000 per year going to save an additional $80,000?
Guess what? The following year they get another 5% raise. Now they need $1,764,000 before they can retire. In two years, after two years of normal raises, the amount they need to save for retirement has gone up by $164,000.
Guess What? The third year they get another raise. Guess what? They are wage slaves. Guess what? So are you.
After ten years of salary raises, the couple is earning $130,000 per year, and therefore will need $2,600,000 to retire. Another million dollar difference! One million more dollars, than they needed a decade earlier, is now required to retire. Pick any mutual fund, money manager, hedge fund, or 401k plan you like, it makes no difference. Even if they increase their monthly savings for retirement to $2,000 per month, and for the next ten years they earn an incredible 20% annual return on their investments, they will still come up $250,000 short.
The Wall Street formula is designed to insure that you can never stop working, that you will be forced to continue paying fees and commissions, and that you remain a Wall Street wage slave. Depressed? Don't be, in the next chapter, you will learn how to easily regain control of your financial future and achieve financial freedom.
A lie repeated often enough, never becomes the truth, it becomes an accepted fact. In order for the lie to be successful, and to persist for any length of time, it must contain an element of truth. The formula used to calculate your necessary retirement savings, the formula used by Wall Street to rob you of your financial freedom, contains the truth.
You need enough retirement savings to support spending each year in retirement the equivalent of 80% of your current salary.
The part of the formula in bold, is the truth, the rest of the sentence is a lie.
How much savings you need to retire is determined by how much you will spend in retirement. You control how much you will spend in retirement, therefore, you control how much savings you need to retire. You control your financial freedom, you always did, Wall Street puts your salary into the formula to control you.
The formula for accurately calculating how much retirement savings you need, was developed by Green Retirement LLC., and is as simple to use as the Wall Street Formula:
Retirement Savings = Retirement Spending / 4.5%
4.5% is the Safe Withdrawal Percentage, the amount you can safely withdraw from your retirement savings each year, without worrying about running out of money. The Safe Withdrawal Percentage ranges from 3%, for a person retiring at age 35, up to a maximum of 4.75% for a person retiring at age 60 and older.
Here is an example of how to use the Green Retirement Formula: If you retired today, and determine that you will need to spend $3,000 per month ($36,000 per year), then using the formula:
$800,000 = $36,000 / 4.5% A budget of $3,000 per month requires a Net Worth of $800,000.
If you reduce your retirement budget to $2,000 per month ($24,000 per year)....
$530,000 = $24,000 /4.5%
Simply reducing your retirement budget by $1,000 per month, reduces by over $250,000 the amount you need to save for retirement, and therefore reduces by several years the amount of time you need to work.
All you need to do, to achieve Financial Freedom, is create a retirement budget - that's it. Create a retirement budget and calculate how much savings you need to become financially free. The lower your budget, the less savings you need, and the earlier you can retire.
For generations Wall Street has profited by keeping working Americans as wage slaves. Your parents were wage slave, you are a wage slave, and your children will become wage slaves. If Wall Street is going to survive, it is going to have to stop robbing Americans of their financial freedom, and return to it's original purpose.
Wall Street invests part of the money they rob from you to hire politicians, who pass laws on behalf of their Wall Street clients, to rob you yet again. Right now, Wall Street is using the government to rob you even further, taxing you to pay off their bad bets and bad debts. Wall Street owns Washington, both political parties, and the president. The entire financial and political system of the United States has been gamed, their is no way for the individual working American to achieve financial freedom, it affects all Americans equally.
Young and old, black and white, Democrat and Republican, liberal and conservative, blue collar and white collar, rich and poor, every working American is a victim of the Wall Street formula in one way or another. A Dentist earning $200,000 per year, using the Wall Street formula, needs $4 million to retire, if he has a retirement budget of $6,000, then he only needs $1.8 million to retire. The Wall Street formula turns All working Americans in to wage slaves. And, it affects the price you pay, for dentists, doctors, lawyers, mechanics, architects etc. Because they believe that they need more savings than necessary to achieve financial freedom, they charge you more for their services than necessary, the formula affects the price you pay for everything.
Wall Street must be stopped, and can be stopped, without anyone ever knowing. No revolution, elections, protests, organizing, or sacrifice is required to defeat Wall Street.
If you simply stop using the Wall Street wage slave formula, and instead use the Green Retirement formula for calculating financial freedom, you will no longer be a wage slave. And no one needs to know, not Wall Street, not Washington. If every working American, abandons the Wall Street formula, a silent rebellion against the corrupt Wall Street machine can occur, a silent rebellion that returns the money and the power back to the people.
I have given you the key to financial freedom, I have saved you a million dollars, I have enabled you to retire ten years earlier. I have restored hope and optimism to your financial future. I ask of you only one favor, spread the wage slave rebellion - help end wage slavery. With freedom comes responsibility.
Author Ramsay Mameesh has over ten years of corporate banking experience in both community and international financial institutions. He is a graduate of California State University, and holds degrees in Business, Marketing, and Economics. Ramsay Mameesh is C.E.O and Founder of Green Retirement LLC., located in San Francisco, California.