If the last several years have taught us anything, it’s that traditional retirement planning falls short in today’s economy. Because the old rules of saving and investing no longer apply.
As we’ve discussed before, the conventional retirement planning model came to fruition in the 1980s. The industry has been peddling the same advice for over forty years now.
But I submit to you that the conventional model was built on two faulty assumptions – that interest rates would constantly fall and that the US dollar would retain its purchasing power.
Neither of those assumptions have stood the test of time. That’s why traditional retirement planning falls short.
We live in a world where home and car prices have soared. As have groceries and the cost of living in general… all as interest rates have risen dramatically over the last three years.
Meanwhile, wages have lagged far behind inflation, leaving the average household in a tough spot. This occurred even as American productivity powered forward… which tells us that the Cantillon Effect is in full swing.
Named for classical economist Richard Cantillon, the dynamic he observed describes the uneven impact that changes in the money supply have throughout the economy.
Specifically, Cantillon noted that when new money is injected into the economy through a central bank or government printing, those who receive and spend the new money first benefit by being able to purchase goods and services before prices rise. This disadvantages everyone else in the economy because it effectively steals purchasing power from the dollars they work for and save.
This chart illustrates the insidious nature of the Cantillon Effect over time:
Here we can see how American wages rose in tandem with productivity up until 1971. That was when President Nixon closed the international gold window and severed the US dollar’s final link gold.
That link to gold was the primary restraint on the creation of money and credit… and this chart shows why it was so important.
The powers-that-be have systematically injected trillions of new dollars into the economy since 1971 – and we can see the result clearly. The act of creating money from nothing effectively transfers purchasing power from the average guy to those favored institutions who get to spend the trillions of dollars in new money first.
Coming full circle, this dynamic is why traditional retirement planning falls short today. I suspect that the very concept of “retirement” will fade away over the coming generation.
Are you prepared for what comes next?
We have spent countless hours behind the scenes putting together a multi-day program that we’re calling the Bulletproof Money 3-Day Challenge. Over the course of the program, we’ll unpack the seismic economic changes unfolding right now, and then we’ll show attendees exactly what to do about it.
What’s more, we’re going to have specific takeaways that everyone can begin to take action on after each session. That’s the “challenge” part. It’s a challenge to get your financial house in order ahead of the massive shift that we’re now on the precipice of.
Here’s our itinerary for the 3-Day challenge with a very brief summary of each session:
- Day One: August 20, 2025
- Start Time: 3:00 pm Eastern
- Challenge: Uncover the hidden flaws in traditional retirement models and why they leave so many unprepared.
- Day Two: August 21, 2025
- Start Time: 3:00 pm Eastern
- Challenge: Build a step-by-step blueprint to build true financial security in today’s climate, with actionable strategies you can implement right away.
- Day Three: August 22, 2025
- Start Time: 3:00 pm Eastern
- Challenge: Learn how to kick-start multiple streams of passive income and walk away with your own Financial Freedom Plan.
We’re still several weeks out, but I wanted to put this on your radar now so that you can make arrangements if you would like to participate.
I know it’s hard to carve out time to attend a single live event, much less three in a row. But I think we’ll be able to get so much more accomplished with three consecutive sessions. Each session will be immersive and interactive, and we’ll take questions and engage in discussion as appropriate.
So if you’re ready to get a jump on the world to come, please consider taking me up on the Bulletproof Money 3-Day Challenge. You can register for it right here: https://phoenician-league.lpages.co/3-day-challenge-registration/
More to come…
— Joe Withrow