We were taught that saving for retirement using a 401K, 403B, IRA, deferred comp. or any “qualified” fund was the right thing to do. Now the baby boomers are reaching retirement age and they are finding that those retirement vehicles have robbed them!
Just a generation ago you did not have to save any money for retirement. For the Boomers, Generation Xers those dreams have been shattered. Most of us work for companies that have no desire to take care of us after a lifetime of service to them. Today more than 50 million Americans save for retirement via their 401k type of plan! With an average balance of $60,000, most will never be able to retire!
The average fee on these kind of plans is between 1 ½ percent to 3 percent. Many people aren’t even aware that they are paying these fees. So, on an investment of $100,000, you would pay an annual cost of $3,000, whether you make money or lose money. Over a span of 15 years, that could be a total of $45,000 taken away from your retirement account. Then, when you start systematically withdrawing the money in retirement, you will have to pay income taxes on that money.
Why should you put up 100% of the money and take 100% of the risk, pay their fees, and then pay taxes on everything? The mutual fund company took no risk, put up no money, but still took $45,000 in fees.
Over seventeen trillion dollars are in qualified plans today, charging Americans high fees and giving them very little in return. Between the fees, taxes and the volatility of the stock market, it’s no wonder there is a financial crisis in this country. Just because we were doing what we were told to do with our money.
The answer is to pay your taxes now, while you are still working and have tax deductions. Pay taxes on the seeds of your investments, not on the harvest. With the right retirement vehicle you will never lose money and you will pay no income tax when you start withdrawing the money in retirement. Not even on the gains! You can even be guaranteed an income for the rest of your life. The answer is: INDEXED UNIVERSAL LIFE INSURANCE. These policies also can also come with critical illness and chronic illness coverage. Get the facts and set yourself up for a tax free retirement.