Is Your 401(k) now a 201(k)?
Is Your 401(k) now a 201(k)? Did you miss this week’s show? Doug Andrew discussed the following: We have four goals for each of you listening to Missed Fortune Radio.  1) Increase your money supply. 2) Create more and better benefits for you. 3) Eliminate unnecessary tax.  4) Be able to do all of this without [...]

Is Your 401(k) now a 201(k)?

Did you miss this week’s show? Doug Andrew discussed the following:

We have four goals for each of you listening to Missed Fortune Radio.  1) Increase your money supply. 2) Create more and better benefits for you. 3) Eliminate unnecessary tax.  4) Be able to do all of this without increasing your cash outlay one dime.

How many of you saw your qualified plans go down in value these last couple of years?  These plans for retirement use investment vehicles such as 401(k)s, IRAs, 457s, pension plans, profit sharing, 403(b)s, and tax sheltered annuities.  Many of these plans are now half the value that they once were.  Traditional financial planning is giving the same old advice and strategies that they always have and we all know the kind of “results” this advice has produced.

Attend our Weekly Internet Seminar/Webinar: Don’t miss your chance to understand how to protect your money during economic crisis but get competitive rate of returns during the good years.  This strategy is called indexing and you need to know all about it.  Call 888-76-Radio (888-767-2346) to register for either our 11am or 6pm Pacific event.

New FREE Missed Fortune E-book: Baby Boomer Blunders. THE PROBLEM? The average Baby Boomer has less than $50,000 accumulated for retirement (which means many have less than that), primarily due to bad habits and having money invested in the wrong places where economic downturns can diminish their nest egg. Download at www.babyboomerblunders.com

Is anyone any minding the store at the Federal Reserve?
Is anyone any minding the store at the Federal Reserve? Did you miss this week’s show? Doug Andrew discussed the following topic: On May 8, 2009, Rep. Alan Grayson asked the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went and the trillions [...]

Is anyone any minding the store at the Federal Reserve?

Did you miss this week’s show? Doug Andrew discussed the following topic:

On May 8, 2009, Rep. Alan Grayson asked the Federal Reserve Inspector General about the trillions of dollars lent or spent by the Federal Reserve and where it went and the trillions of off balance sheet obligations. Inspector General Elizabeth Coleman responded that the IG does not know and is not tracking where this money is. If you want view this five minute shocking interview, go to this video at the Missed Fortune SuperBlog.

This direct interview is unbelievable because the IG doesn’t even understand the question, nor is capable of answering it. How did she get to that position? I should be surprised, but I’m not!

Attend our event live over the internet on Tuesday June 16th or in person in SLC, UT at 6:30 Mountain/5:30 Pacific: Don’t miss your chance to understand how to protect your money during this economic crisis but get competitive rate of returns during the good years. This strategy is called indexing and you need to know all about it. Call 888-76-Radio (888-767-2346) to register for either the national internet broadcast or the live event in Salt Lake City, UT.

New FREE Missed Fortune E-book: Baby Boomer Blunders. THE PROBLEM? The average Baby Boomer has less than $50,000 accumulated for retirement (which means many have less than that), primarily due to bad habits and having money invested in the wrong places where economic downturns can diminish their nest egg. Download at www.babyboomerblunders.com

IRAs and 401(k)s Proving Not to Be Best for Secure Retirement
If you’re like many Americans, you may have seen 30, 40 or 50 percent losses on the value of your 401(k)s or IRAs in the last few years. But I predict the worst hit is yet to come-and it’s not what you think. As it is, recovering from losses can be tough. For example, when an [...]

If you’re like many Americans, you may have seen 30, 40 or 50 percent losses on the value of your 401(k)s or IRAs in the last few years. But I predict the worst hit is yet to come-and it’s not what you think.

As it is, recovering from losses can be tough. For example, when an account loses 50 percent of its value, the account has to experience a 100 percent gain just to get back to the break even point. Say you had $100,000 in a 401(k) two years ago that is now worth $50,000. Your account would need to double to get back to its original value. In this volatile economy, that could take years.

Also, retirement accounts  that were once worth twice as much and generated interest income of 7, 8 or 9 percent, are now worth half as much and are only generating 2, 3 or 4 percent.

But that’s not all to be worried about.

Despite all the recent losses, I predict it will pale in comparison to the tax hit retirees will experience the day they begin withdrawing their money from their qualified retirement plans.

I had a school teacher who came to me several years ago for financial planning. She knew she would only be receiving 60 percent of the income she had when she was teaching (2 percent for every year of 30 years of service). Thus, she had socked away money faithfully in the state’s 401(k), 403(b), and in tax sheltered annuities (TSAs) to supplement her retirement.

But when she retired, she found herself in the highest tax bracket she had ever been in, even though she was not working. Why? Her house was paid off; she was not contributing to these accounts anymore; and she had no dependents. Her tax deductions were all gone.  On top of her pension and social security, at age 70½ she was forced to withdraw the minimum distribution from her tax-deferred accounts. Her taxable income was $80,000 a year, with hardly any deductions.  All that money she had saved in taxes during her 30 years of contributions-she essentially paid it back to Uncle Sam during the first two years of retirement, and every two years thereafter!

You see, the government has a permanent tax lien on your IRAs and 401(k)s.

One thing is certain: Future taxes will be going up. For this reason, I don’t own an IRA or 401(k)-never have, never will! There are better ways to save and have tax-free income in retirement.

If you’re feeling confused and powerless because your IRAs or 401(k)s lost 20-50 percent during the last couple of years, leaving you frustrated-even feeling paralyzed-there are safe strategies and solutions that will help you get unstuck and get your future back!

Doug Andrew

Photo by mujitra

Labels: