Stay Away from 401(k) – A Safer and more Lucrative Alternative is Available.

A 401(k) ALTERNATIVE

Insanity is doing the same thing you have been doing and

expecting different results.

Einstein.

 

My main concern is  preservation of capital, safety and guarantees for your money.

If you like to take risks, what I suggest probably won’t interest you.

BOSS_age65_model

 

 

So, stay away from the 401(k). Don’t take my word for it – watch all these videos and see what others have to say about retirement accounts. Stop the Insanity people. There is a safe and secure alternative. Banks, Corporations and Colleges have been using it for years. Now you should use it as well. See more videos below about this incr edible alternative.

1. 60 minutes – CBS – 401(k) Fallout – Video

 

2. CBS News – The cre­ator of the 401(k) stated the pro­gram just isn’t work­ing – In 1980 Ted Benna cre­ated the 401(k). He now says the strat­egy of diver­si­fy­ing just doesn’t work.

Click here to view video.

 

3. TIME in partnership with CNN It is time to retire the 401(k) Read article below. What is so enticing about the 401(k)? There much better alternatives for making certain your retirement is going to allow you to continue living the lifestyle you enjoy now?

1.  Tax deferred growth is constantly touted as a benefit – Let’s take a closer look at what this actually means: Isn’t the IRS saying – you don’t have to pay taxes on this bag of seed you put into your retirement account now, but, when you take out that bag of seed that has grown into 20 bags of harvest, then you have to pay tax on the whole twenty bags. O.K. ?

And that is what we are all encouraged to do, and do do. Tax Deferred is great when there is a way to have tax deferred growth AND have access to that growth tax free as well. Keep reading to find out how.

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Some facts about 401(k)’s

1.  Some employers matches or at least adds funds to your plan -This is a tax deduction for them and means they pay you less money.

2.  Must pay penalty for using money before you turn 59 1/2 – too bad that it is your money. You must pay to have any use of it because while you are using it, they are no longer able to lend it or invest it to make themselves profits. Think about How you could be using that money during your lifetime instead of being taught that you are not disciplined enough or too stupid to be able to determine the best use of your own money. Learn how to multi-task your money and have control of your money. I am happy to share some pertinent information with you so you can be in control of your money. You are smart enough.

3.  * 401(k) is only 30 years old. It is a broken system. 28.3% losses in 2008.

* Social security is 70 – 75 yrs old. Cannot sustain itself 16 paying for 1 retiree, now 3.5 paying for 1 retiree + work 5.9  yrs longer now.

* 82% of 65 year olds only have an average value of $182,213 in their IRA. Every IRA has an IOU to the IRS – 25% will go to taxes. How many years will what’s left last?

4.   You have no control of your money after you put it in this account. Who decides where it is invested and how much growth it will earn or lose? Do you know?

5.  There is no guarantee at all that you will not lose your principal or accrued interest.

6.  Must pay taxes on all growth as well as the principal when withdrawn. Most people are still having to work, to at least age 65 so withdrawing this money increases your income. Do taxes usually go down over time?

7.  You never know how much you will have upon your retirement. This is really helpful for planning your future, …NOT.

8.  Who can even afford to put enough (extra) money away for retirement so you will be able to lead the type of lifestyle you are leading now?

9. It is time to stop giving your money away for other people to use at their will and start being in control of your own money.

There is a much safer, much more stable, time-tested for a longer period of time, and has much more growth way of multi-tasking the money you are putting away for the future. Do yourself a favour and at least look into this system.

Superior Alternative

A Dividend Paying Whole Life Insurance with Specific Riders and Design is the solution. ONE Particular Patented Policy Will Work Best. Call me to see which one I recommend.

Here is some general educational information about WLI. – Video

CNBC Interview on Insurance as a new asset class for the General Public. – Video

Galveston County, Texas – A model for Social Security reform – Insurance has better results than Social Security

A Patented Policy Design Offers all the advantages you see below and more.

 

BOSS.One.Simple.System

 

Why It’s Time to Retire the 401(k)

By Stephen Gandel Friday, Oct. 09, 2009

Robert Shively, 68, worked in a chemical plant for 36 years, but that didn’t earn him an easy retirement.

Retiree Robert Shively spends his days on the golf course. For many, that would be a dream come true, but not quite in the way Shively does it. The 68-year-old is the cart mechanic at the Niagara Falls Country Club. Two and a half decades ago, his then employer, Occidental Petroleum Corp., cut its traditional defined pension plan in favor of a 401(k)-type system. So instead of getting a guaranteed pension check of $1,308 a month for his 36 years as a full-time, salaried employee, the former chemical-factory worker receives $225 a month from his 13 years as an hourly employee, plus $180.16 a month from a profit-sharing plan Oxy had for salaried employees until 1994. He also has $70,000 left of the money he saved from his tax-deferred 401(k).

On the days he works, Shively rises at 5 a.m. to get to the golf course. He mostly enjoys the job. But on tournament mornings, he has to be at the course at 4 a.m. A few years ago the country club switched from gas to electric carts, some of which have four 84-lb. batteries each. Every year, Shively and another worker have to lift out all the batteries and store them for winter. “Your body aches all over,” he says. This isn’t how retirement was supposed to be.

If you have even peeked at your account statements in the past year, it’s painfully obvious that something is wrong with the way we save. The tax-deferred 401(k) plan, and others like it, such as the 403(b) and the IRA, have become our nation’s go-to retirement piggy bank.

Invented nearly 30 years ago as an executive perk — one more way to dodge Uncle Sam — the 401(k) was never meant to replace the employer-guaranteed pension fund, supplemented by Social Security, as the cornerstone of our nation’s retirement system.

But propelled by a combination of companies looking to cut costs and consumers who wanted control of their retirement destiny, that’s exactly what happened. The ugly truth, though, is that the 401(k) is a lousy idea, a financial flop, a rotten repository for our retirement reserves.

In the past two years, that has become all too clear. From the end of 2007 to the end of March 2009, the average 401(k) balance fell 31%, according to Fidelity. The accounts have rebounded, along with the rest of the market, but that’s little help for those who retired — or were forced to — during the recession.

In a system in which one year’s gains build on the next, the disaster of 2008 will dent retirement savings long after the recession ends. In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. During the market downturn, the 401(k)s of 55-to-65-year-olds lost a quarter more than those of their 35-to-45-year-old colleagues. That’s because in your early years, your 401(k)’s growth is driven mostly by contributions. You control your own destiny. But the longer you hold a 401(k), the more market-exposed it becomes. It’s a twist that breaks the most basic rule of financial planning.

The Society of Professional Asset-Managers and Record Keepers says nearly 73 million Americans, or just under 50% of our working population, now have a 401(k). And collectively we pour more than $200 billion into these accounts each year. But retire rich? Don’t bet on it. The average 401(k) has a balance of $45,519. That’s not retirement. That’s two years of college.

Even worse, 46% of all 401(k) accounts have less than $10,000. Today, just 21% of all U.S. workers are covered by traditional pensions, and the number shrinks every year. “The time may have come to consider returning 401(k) plans to their original position as a third tier of retirement planning, behind pensions and Social Security,” says Alicia Munnell, who heads the Center for Retirement Research at Boston College. “They should not be the thing we rely on for retirement security.” And the government seems to agree.

This summer, the Government Accountability Office concluded, “If no action is taken, a considerable number of Americans face the prospect of a reduced standard of living in retirement.” That’s what is known as an understatement. The 401(k)’s defenders say bad markets don’t make the accounts a bad idea — and that it’s still too soon to tell whether they work. Many companies adopted them less than 20 years ago. Even then, most firms (including mine) still provided pension plans to their workers. So boomers retiring now were never focused on piling money into 401(k)s. In order for the plans to succeed, workers have to stash savings regularly for about 30 years. Most accounts haven’t been around that long.

Read more: http://www.time.com/time/magazine/article/0,9171,1929233,00.html#ixzz1St3jQjIy

(Putting your money in jail, willingly, for 30 years is just not the way to build wealth. How many millionaires own 401{k}s? Probably none.}

Watch this NOW. You need to know.

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February 19, 2010 · Jennifer · 3 Comments
Tags: , , , , , , , , , ,  · Posted in: 401(k)

3 Responses

  1. CPA Network - March 3, 2010

    Open to tackling a range of tasks?

  2. Steve - May 28, 2010

    Thank you! You often write very interesting articles.

  3. Innovative Insurance - August 6, 2011

    Join the thousands of people who are turning to specially-designed-for-banking, dividend paying, whole life insurance

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