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Investing Without Cash Reserves or Traditional Retirement Plans

Dara Albright

 

Worthy Wealth Tips are not investment advice, they are wealth -building guidance. There are gazillion bloggers or financial advisors out there that tell you how to invest the money you already have. But there aren't many who show you how to leverage modern innovation to obtain that investment capital in the first place. And that's where we come in. And that brings me to Worthy Wealth Tip #1 - How to build a nest egg without cash reserves or access to traditional retirement plans.


Now, if you are like most Americans, I am sure you worry about how you will fund your retirement. A recent Gallup poll shows that 71 % of non -retired adults are at least moderately worried about being able to fund their retirement, and 42 % say they are very worried. Now, these poll results are not surprising considering that all three pillars of America's existing retirement infrastructure are irreparably broken.
 
The pension and social security systems, which are the two pillars which rely on existing and future workers for support, are completely unsustainable. The cost of America's social security program now exceeds its income, and it is expected to run out of money in less than 10 years. That's exactly what happens when you have more and more retirees receiving social security benefits and less and less workers contributing into the system.
 
The pension system is also in serious trouble. The pension debt per state per household is spiraling out of control. Depending on the state, pension debt ranges anywhere from $2 ,000 to nearly $100 ,000 per household. In fact, it's so bad that pensiontracker.org stopped tracking it altogether.
 
That brings me to the third pillar. the defined contribution system, also known as the 401K. That's the only self -supportable retirement pillar that we have. Although it is sustainable, it is unfortunately out of reach for the approximately 60 % of Americans who are presently living paycheck to paycheck and are unable to contribute to a 401K plan or the escalating number of gig workers who don't have access to employer plans at all.
 
So how do we prevent the entire retirement system from collapsing when two pillars are on the cusp of imploding and the only sustainable pillar is becoming less accessible to a growing number of Americans?
 
Now, if you ask the brightest economic minds, they will tell you that the solution is for Americans to simply spend less and save more. That is not a solution. That is an adage and a callous one of that given that it doesn't even account for today's rampant inflation.
 
Fortunately, though, fintech has emerged to offer a new solution to building nest eggs and one that does not depend on any of the three traditional retirement pillars and one where the inflation rate doesn't serve as an obstacle.
 

But best of all, fintech saving solutions are available and within reach to anyone, whether you're young or old, whether you have a job or you do not, whether you have idle cash laying around or whether you do not.

Thanks to fintech, anyone can build a retirement nest egg simply by engaging in one's typical day -to -day activities, such as posting on social media, taking educational courses, watching entertaining videos, listening to podcasts, surfing the web, exercising, and yes, even America's favorite pastime, shopping.

Saving for retirement while shopping is what we call consume to earn, and millions of Americans are already doing it with fintech savings apps that allow shoppers to round up their purchases and watch those roundups grow with compound interest.

Most of these fintech savings apps are free and so simple to set up, and those roundup dollars really add up. Here's how you could turn your daily coffee habit into thousands of dollars with Worthy's Roundup app, all from just drinking coffee. Hope you found this tip to be helpful, and to learn more, simply go to worthybonds .com.

Click Here to see the entire Worthy Wealth Tips series.

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Modern Investing
Dara Albright
Post by Dara Albright
October 25, 2023
Dara Albright is a fintech pundit with distinct expertise in digital and decentralized finance. She possesses a distinguished 32-year career in financial services encompassing IPO execution, investment banking, trading, corporate communications, financial conference production as well as institutional and retail sales. She is the host of the Decent Millionaire podcast, an episodic podcast series that helps people discover the unprecedented wealth creating potential of decentralization, web3 & Participate2Earn Economics, and is the co-founder of DWealth Education, a learn-2-earn EdTech platform designed to bridge digital asset literacy gaps in corporate, government and academic sectors. Albright serves on multiple boards including Worthy Financial, a scaling fintech enterprise and ICAN (Investor Choice Advocates Network), a nonprofit public interest litigation organization serving as a legal advocate and voice for small investors and entrepreneurs.

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