Tuesday, August 2, 2011

Google "401k Nationalization" and "Guaranteed Retirement Accounts"

Thank you for coming across my article.  I encourage you to do your own research.  I have posted links to articles and videos below but there is no substitute for your own unbiased research.

If you're like most people you have been re-thinking your 401k for a few years.  Fortunately, there is one option that has existed for over 150 years and it continues to execute as planned ensuring the safety of money for current and future generations of savers.

I’m not an advocate of 401k plans because, in my opinion, ultimately the tax deduction now isn’t worth the risks entailed in these retirement vehicles.  The risks being:
-Risk of stock market loss
-Risk of future taxes being at higher levels (not to mention the certainty of those taxes)
-Lack of liquidity

The other aspect is the risk of confiscation of those retirement funds by the government.  This may seem an off the wall concern but our government has had academics studying such a strategy for a few years now.  What the government creates and controls, they have the ability to take without asking.  Do a quick google search for  “guaranteed retirement accounts” and “401 nationalization”.  The govt has been cooking up ideas to go after the money in 401ks for a couple of years and the threat is getting more serious as time goes by and our economy and debt situation gets worse.   What we will eventually be told is that this money will be converted to treasuries in order to protect us from stock market losses and provide us with income for life which 401ks cannot do.   I can share with you two events that are going to take place likely in the next ten years that will derail all 401k and IRA plans and make such a proposed plan to nationalize 401k’s a reality.  Ask me when we talk or remind to write about it later.

The last thing any investor will want is their money tied up in one of these plans.  And if you think our govt wouldn’t go after our retirement accounts, you’ll be shocked to learn they’re already doing it.  Not sure if you caught it in May, but the treasury has already tapped into federal pension retirement accounts:  http://www.msnbc.msn.com/id/43046428/ns/business-stocks_and_economy/t/us-dips-pension-funds-debt-limit-hit/#.Tjh8tWG3Lts.  For a more in-depth discussion regarding why your 401k/IRA will be raided, I recommend also reading this article.

If you have time, you might like to listen to this.  Mark Levin has a radio program from 3-7 on KSFO here in the Bay Area.  This interview is with Dr. Ghilarducci who is working on the above mentioned plans.  She’s been working on it for years.  Here’s the video:

This same academic says the 401k has failed in this in-depth video. I agree with her in that regard.  I just don’t agree with her solution.  

Govt doesn’t know better and really should just stay out of the way.  My opinion.  Whole life contracts, like the ones utilized for IBC/Bank on Yourself clients, have worked with little change for over 150 years and preceded the IRS.  The benefits of a whole life contract were even included in the Internal Revenue Code (IRC 7702a).  Those are facts.

If you have twenty minutes in your schedule I’ll walk you through a hypothetical policy and show you how IBC/Bank on Yourself actually pays for your death benefit with the money you’ve already committed to saving.  Basically, you’re going to get multiple uses and benefits with every dollar saved into the plan. 

Liquidity, safety, and tax-free growth, distribution and transfer.  Those are the starting points.  You’ll see the death benefit just comes along for the ride and that the broader strokes of IBC/Bank on Yourself will have a much greater impact on your own personal economy.

In short, avoid the tax trap and possible confiscation of your money by government hands.  Our government is broke and will try to find ways in the coming years to increase revenue.  It has to and the easiest target is your 401k/IRA.  Avoid any future 401k nationalization by choosing a private contract as the foundation for your savings.  And remember this, wealthy people, I'm talking people with $10 million+ in net worth, don't use 401k's. They pay their taxes up front so they can have a tax-free return or lower exposure to taxes through a capital gains tax. Avoid the tax trap and take control of your money.  After all, you did work for that right.

John A. Montoya
JLM Wealth Strategies, Inc.
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
CA Life#0C42222
DRE #01390017
NMLS #342818

Watch the new video at www.CashValueBanking.com!

1 comment:

  1. Planning for the retirement is very important and this is a useful tool, which can assist in the starting.