Friday, February 8, 2013

The 40/40 Plan is not working anymore by Dioni Morales

This week I want to talk about something my husband and I talk about often. Most of us were, and still are, lead to believe that if we go to college and then are lucky to find a good job, and we give it our all 40 hours a week for 40 years, we will be set for the rest of our lives. Well, unfortunately that is rarely the case anymore. Fewer people are considered indispensable, and we know that we can be let go at any time - because the corporation changed hands, because they found someone younger and/or that gets paid less to do the same job we do, because computers are now doing our jobs, etc. We could be a bit more lucky and be asked to accept less pay and more hours to keep our job or be politely asked to retire early. Or, we could be very lucky and do endure the 40 years, but will we have what we need to have a happy retirement?

The average 65-year-old retiree is now expected to survive until age 84. This means that retirees need increasing amounts of money to afford a comfortable retirement and provide a cushion for emergencies over such a long period without employment. In fact, some reports indicate that 65-year-old retirees need a minimum nest egg of more than $1 million. Unfortunately more than half of retirees, 54%, report they have less than $25,000 saved. Because the main financial goal for people in this group was about immediate work and financial security, they were unable to focus on preparing for the future. That’s why many retirees are forced back to the workforce.  According to an analysis of data from the U.S. Bureau of Labor Statistics, the number of workers 65 and older has grown dramatically, nearly 60 percent over the past decade.

So, is the 40/40 Plan working? Is it a good plan, a reliable plan? I say, absolutely not! This is why I have been working, not hard but smart, in the direct sales industry. My husband and I didn't have money to invest in a big business, and even if we did, traditional businesses are hard and time-consuming.  It definitely doesn’t provide the freedom we were looking for. When you are creating your direct sales business, you invest very little money, you work smart for a few years and then you are set for life. This is what I call safe, unlike the so-called security of a regular job.

This is a powerful motivator, so use this information to start a conversation with those friends, colleagues and relatives that you will be talking to about joining your organization as Stylists. Remember your February goal to get at least one more Stylist to join your team and the Promotion in which you can get white leatherette T-Bars to display your jewelry.

Remember: work smart, not hard!

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