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.

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.

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.

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.

(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.

1. Innovative Insurance says:

   August 6, 2011 at 2:03 pm

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

   May 28, 2010 at 2:45 pm

   Thank you! You often write very inter­est­ing articles.
3. CPA Network says:

   March 3, 2010 at 1:17 pm

   Open to tack­ling a range of tasks?