Gullibility is defined as a failure of social intelligence in which a person is easily tricked or manipulated into an ill-advised course of action. We've all heard a sucker is a born everyday. If that's case, we are certainly living in the land of plenty. At this point in our country's legislative history we all should know better than to trust even the best intentions our government has for us. Promises made by government typically end up broken but it doesn't stop us from believing next time will be different.
How gullible are we? Here are two examples without having to blink.
First, without getting into the Ponzi scheme that is the Social Security program, I'll simply remind you that our social security benefits were promised to be tax free. President Reagan buried that promise in the early 80's. Currently up to 85% of social security income can be taxed as ordinary income.
Secondly, when the 16th amendment was passed in February 1913 creating a federal income tax, people were fooled into believing that federal tax brackets would remain low. According the Tax Foundation, the top tax bracket in 1913 was 7%. Believe it or not, the top tax bracket was once 90%! The current 35% top bracket seems like peanuts in comparison, but with the national debt exploding, most logical people are beginning to realize that lower federal taxes aren't coming any time soon.
So what is a bloated Federal Government to do to raise badly needed revenue? At a time when the IRS is busy squeezing every dime it can get from it's citizen base, there is over $18 trillion in untapped assets waiting to be taxed in the form of 401k's and IRA's. That money isn't safe. The Feds will eventually get their hands on that untapped nest egg, too. But that's a story for another day.
The bottom line is this. The government wrote the rules that created 401k/IRA's and now with a desperate fiscal reality starting to coming into focus, they are looking to change the rules simply because they can. Anytime the government creates a contract, they have power to alter it to suit their needs. Right now, they are desperate and your loss will be their gain.
The Feds are looking at all the ways to collect as much revenue as possible in order to reduce the $16 trillion (and rapidly growing) national debt. What's the easiest and quickest way to increase tax revenue? The idea currently being passed through Congress is to eliminate the tax deductibility of your 401k contributions.
Are you beginning to feel like you've been gulled into one more failed government promise?
“Unlike the current system,” economist William Gale told Congress, “workers’ and firms’ contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income.”
This is just one more reason why you should be looking to bypass your 401k/IRA contribution and learn about the Infinite Banking Concept (IBC). IBC is a private savings/retirement strategy utilizing private life insurance contracts to protect, grow, and leave a legacy of wealth. It guarantees what a government approved 401k/Wall Street program cannot: a lifetime income.
These IBC contracts are the private citizen's best kept secret to growing wealth without worrying about the ups and downs of the stock market or without ever having to worry about Uncle Sam take a bite out of their money. They provide a guaranteed return (even when you use the money), liquidity (no early withdrawal penalties), and also have the ability to supplement your retirement with tax-free income.
Just because you're likely unaware of the benefits these private contracts offer doesn't mean they are new. In fact, they have existed for over 150 years but because banks and Wall Street don't profit from them, you've likely never heard of it. It's time to change that, don't you think?
You're an adult now. It's time to stop being gullible. If you're partnering with Uncle Sam for your retirement, all you're going to get are broken promises. Take control of your money and your retirement by getting it out of government hands.
Visit my site at www.JLMWealthStrategies.com to watch the videos and/or call me at (925)386-6639 for more information. You can also go to www.FindOutMoreNow.com and use my promo code: JM66.
If you're still believe in government promises including those made by the current administration, check out the videos I have posted here: http://jlmwealthstrategies.blogspot.com/2012/04/broken-record-of-broken-promises.html