Saturday, June 02, 2007

People over 65 are either dead or broke dead

A myth spread by many IBOs, on and off stage. I heard it may times. Scott Larsen of Amquix.info has published this research

Myth: According to the American Bankers association 95% of all people retiring at 65 are either dead are broke.

Truth: Many lines of sponsorship want to scare the prospects with the "retirement statistics". Many groups have repeated the line above and World Wide Dream Builders puts something similar in their "private franchising" brochure. They state that according to the Social Security Administration, people reaching age 65:

23% still working
30% dependent on charity
45% financially dependent on relatives
2% are financially independent

The source of the "American Bankers" statement above had alluded me. This topic came up on the QuixtarNow Blog with a link to a January 30, 1935 article from the Senate Finance Committee where the actual basis for this claim can now be found. Interesting is that the statement was made even before the Social Security Act was signed into law in August of 1935. It seems unethical to me that these Amway organizations would continue to quote an 80+ year old survey in light of the fact that many things have changed to improve the incomes of retirees. Since the article was written in 1935 such things as Social Security, corporate pensions, 401K plans, IRA's, Roth IRA's and annuities have improved retirees' incomes significantly.

Data from the IRS suggest that this common myth of Amway and Quixtar distributors is very untrue 80+ years later. The data show that 50% of all retires have incomes greater than $20,000, and 20% have incomes greater than $40,000. About 5% had incomes over $100,000/per year. If any income under $100,000/year classifies you as "broke", then the distributors' claims are true.
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21 Comments:

At 6/02/2007 01:14:00 AM, Anonymous Anonymous said...

"It seems unethical to me that these Amway organizations would continue to quote an 80+ year old survey..."

It also seem unethical to me that these Jewish anti-defamation leagues would continue to quote a 60+ year old Holcaust tale... no?!

 
At 6/02/2007 01:25:00 AM, Blogger Loser said...

There is nothing wrong quoting 60, 80, or 2000 year old quotes. Provided it's told how old it is.

This 80 year old quote or statistics is told as current financial status of people above 65. Which is a lie.

 
At 6/03/2007 02:41:00 PM, Anonymous Anonymous said...

That's actually not true. It's not telling how old it is that makes it true or not. It can be older than the world and still true.
People above 65... a lie, whatever you want to call it buddy. I know people in their 30's and 40's who work a lot of hours and don't make more than $ 30.000 CAN per year. I know people who invest into retirement savings (like my parents) and who complain about how bad the funds fluctuate because of the economy. Do you call that security? Not me and besides that, I don't want to end up like my parents who work like crazy just to save for retirement, just to not be able to enjoy the money they make because they know their retirement pension alone will basically place them in an elderly home... like what kind of life is that?. Whenever their retirement savings funds go down they bitch about it for an hour, two, etc. Just negativity and despair that poisons me. If that's your daily food, keep it to yourself. I want to share nothing of it. So yeah, they have an awesome life which is to say that even with their retirement savings they will still be pretty much broke at 65 and living a life of mediocrity. That is not me and I know it. My dream is not for sale.

 
At 8/20/2007 07:39:00 PM, Anonymous Joecool said...

When I was active, my upline defined "broke" as someone needing a government subsidy to survive - such as welfare assistance.

If that is true, then I highly doubt that even 50% or people aged 65 are "broke" by that definition.

 
At 10/17/2007 11:34:00 AM, Anonymous Anonymous said...

quixtar is great!!! I'm 19 years old and I make over 50,000 a year, plus I've read many recommended books from them which only teach positive facts.

 
At 10/25/2007 12:21:00 PM, Anonymous Anonymous said...

What they publish is not a lie, but that doesn't make it any less deceptive. They don't quote that information is 70+ years old. And that the statistics came from the middle of the great depression nonetheless.

Things have changed in this world to provide you retirement security, whether it be 401k or simple social security. For Quixtar IBOs to use this outdated info as a scare tactic is very deceitful and challenges one's credibility. But in the end they have to wake up and look themselves in the mirror every morning, how they can do as such while deceiving people, I don't know.

To make matters worse how can you even start to justify the deception? That it is "ok"? You are selling a program and bashing another (corporate work) by instilling fears of being broke, and basing it off of data that is outdated.

What if I was to tell you, that you'd better hurry up and enjoy your life because the average life expectancy is 48. Would I be lying? By your definition I wouldn't because I didn't tell you during what period of time I was pulling those statistics. You only assume it is relatively current, when it could be from the Roman Empire.

 
At 10/25/2007 12:36:00 PM, Anonymous Anonymous said...

Or what if I told you that the avg. household income was only $1368 so you'd better look for another source of income. Once again, the part I am not telling you is that stat is from the decade of the Great Depression.

What a great tactic! Very honest! No wonder they need to hold church meetings on Sunday to repent for their sins.

 
At 10/25/2007 12:43:00 PM, Anonymous Anonymous said...

Maybe they should read up on their 10 commandments, paing particular attention to the Ninth Commandment.

"Ex. 20:16 Thou shalt not bear false witness against thy neighbour."

 
At 10/25/2007 04:23:00 PM, Anonymous Gina said...

Technically, twisting the truth and omitting simple facts that don't change the value of the statement is not lying...but it is as decpetive as it comes. It may have been true 80+ years ago, but it isn't true today. I find it amusing that the US is supposed to be the wealthiest nation on earth but these people are being drilled about how poor everyone is. That just can't hold any water.

 
At 12/17/2007 01:14:00 AM, Anonymous ROCKO said...

quit screwing around

what are the true stats?

the same as they were 80 years ago or not????

 
At 12/17/2007 12:00:00 PM, Anonymous Joecool said...

The true stats are not 98% of people are dead or broke. These days with retirement plans and 401K and other investments, many people retire comfortably at age 65

Quixtar people just throw out the number to scare you into thinking
that quixtar is your only hope for an easy retirement.

 
At 12/18/2007 12:56:00 AM, Blogger LUCHADOR said...

do you have a 401k???

they all took a crap about 5 years ago didnt they??

your better off hiding the money in a mattress these days

 
At 12/18/2007 12:57:00 PM, Anonymous Joecool said...

My 401K is healthy, thank you very much.

It took a dip but has pretty much recovered. A 401K doesn't mean all of your money is invested in risky stocks. Some of it can be invested in bonds and interest bearing accounts.

 
At 12/19/2007 05:39:00 PM, Anonymous pinkypink said...

Even if their claims are wrong,why should we even bother, if we are not in quixtar.And people who can earn thru quixtar,will definitely do,even if we run so many blogs saying quixtar sucks or whatever.If you cannot do,YOU cannot.But there are people who are doing it.And I bet no one with a so called platinum pin or above,wud even look at such blogs.Then for whom, are we writing this blogs.Your opinion cannot change the fact that people actually earn or dont thru quixtar.I believe this is for people with big dreams,apart from routine "job".Its actually fun being to the meeting too.I did not join though, because I thot I cannot do it.So be frank like me, instead of criticism.But in my opinion hats off to the idea of MLM.Let one such idea stick in my head,and I will be in the billionaire's club.

 
At 12/20/2007 12:27:00 PM, Anonymous Joecool said...

pinky, the issue is people being deceived into joining quixtar under the impression that they will prosper when in fact the vast majority do not.

 
At 12/21/2007 01:24:00 AM, Blogger LUCHADOR said...

joecool

im with you on the quixtar/dishonesty think

and in all honesty i was above platinum, there was no fooling/dishonesty coming from the ibo's(the group i was with) its the company fooling the ibo's you have to understand that there is a difference.

interesting way to put it? the 401k....

how far back did that dip set you back in years?

did you figure that out?

why dont you mix in your social security?

should be living in a 20X10 senior apartment that smells like the last persons cat, my point is you best being doing something outside your 401k a ira, or what ever, if your amnbitious, if your not then dont change a thing.... just dont be suprised....

 
At 3/20/2008 04:01:00 PM, Anonymous Anonymous said...

Amway, Alticor, Quixstar, whatever you call it--they brainwash everyone. I have a relative that works for Alticor, and she claims her 401k has made 'over 45%' for the last several years, and is 'up over 52%' this year. However, at 64, she shows no sign of retiring any time soon--me thinks she doth brag too much. She also believes Amway isn't a pyramid scheme. Duh....

 
At 12/16/2008 10:16:00 PM, Anonymous Anonymous said...

Jusrt read a CNN article from 2006 that says:

"The Employee Benefits Research Institute reports that more than half of workers 45 to 54 have saved less than $50,000 for retirement. A recent Fidelity study found that the average boomer is on track to replace just 60% of his or her current income in retirement, even with help from Social Security and pensions."

So if you're used to $75K income and all you have at 65 is $50K, you'll be pretty much on the broke side inside of 1 year.

 
At 5/12/2009 09:32:00 PM, Anonymous Anonymous said...

Whether or not this statement is true in todays world, there definitely is a crisis on America hands. New information has come out about from social security website (5/12/09) stating that the funds most likely will be depleted by 2037. So anyone under 50 will most likely be out of luck. Medicare will be in the toilet by 2017. That in itself should be enough reason to be either saving or looking for something to invest into.

 
At 1/05/2010 02:15:00 AM, Anonymous Anonymous said...

You guys are all idiots! So what if the information is old. The current stats of our economy suck just as bad. If you are going to be picky about everything that is said then do your own due diligence and do some research and see for your self. If you don't want to do Amway then don't we don't care. Just because you couldn't do it don't bash others who can. Sales tactics have been skewed all through history. So just move on with your life and stop wasting your time will stupid blogs. Get a life!

 
At 5/05/2011 11:41:00 PM, Anonymous Ruben Estrada-Salas said...

http://www.nytimes.com/2010/03/25/business/economy/25social.html?_r=1

 

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