The Facts
The Truth Hurts
Which is what you may currently have today
Did you know that Qualified Plans are really just annuities for the US Government?
And this could be what you have today. Needless to say, there may very well be a better opportunity for you, your family and your retirement than what your current qualified plan would give you in your golden years.
Think about this: you may believe you’re getting a deal from the government because they are allowing you not to pay taxes on some of your money now. But in exchange, they’re going to make you pay taxes later – at the future tax rate – on everything you put away PLUS all the growth from those investments during your retirement, which is when you will need your money the most.
Did You Know?
The stock market, on average, has a downward correction of 43% every 9.875 years.
Qualified Plans
All employees must be eligible for the same benefits, no matter their position within the company. So if you want to fund a retirement account, you're funding one for the staff, too.
Most qualified accounts have no guaranteed growth or guarantee against losses.
If you have to use your qualified money before age 59.5, you have to pay a 10% penalty plus taxes.
You must start withdrawing your retirement money, whether you want to or not, and whether you have retired or not, once you have reached age 72.
You have to pay taxes on all the money you withdraw at whatever rate the government will be taxing on your retirement.
When you retire, many of the deductions you enjoy now will probably be gone: children tax credit (children grown), mortgage interest (paid off), business deductions (retired).
The money is available immediately. You can use it without penalty and without any tax consequences.
There are no required minimum distributions. You can use the money now, later, or never. It's your money; use it when and how you want to.
You don't pay any taxes on the money you use. You met your tax obligations years ago!
You don't have to worry about deductions because you aren't paying taxes!
Every time you make a retirement withdrawal, it shrinks because you pay taxes and then the principal left shrinks, so your growth rate shrinks month-by-month.
Improved Plans
You have the freedom to set this program up for whomever you want without having to set it up for anyone you do not want.
You are guaranteed to never lose your principal and that your principal will grow.
You are funding your retirement with loans against the cash value, which means even when you use your money, your principal grows, so your money lasts a lot longer.