401(k) vs. Cash Value Insurance vs. Fixed Index Annuities - You Decide
When you compare a 401(k) to cash value insurance and
fixed index annuities, one is clearly inferior, but you be the judge.
The 401(k) grows or depletes uncapped based on the performance
of the market, and the funds you choose to invest.Your taxes are deferred which means the money
you invested and the growth are taxed on the back end, after you’ve experienced
the growth.You can experience
tremendous gains, but you can also lose all of your money.While still employed, you typically can only
access half of your money invested, and if you do access it before 59 ½, you’ll
pay taxes based on your tax bracket and a 10% penalty on the money withdrawn.And you pay fees over the life of your
savings that are never disclosed.http://www.dailyfinance.com/2012/06/05/hidden-401k-fees-retirement-plan-ripoff/
Cash value insurance either provides a guaranteed fixed
return (4 – 6%) regardless of how the market performs or or it provides stock
market indexed crediting sometimes as high as 7-8% based on market
performance.You can typically access
92% of your cash value accumulation, and there is a death benefit included that
is paid to your heirs tax free.Since
none of your money is invested in the market, your investment is guaranteed and
protected from market loss.Each premium
payment covers cost of insurance, administrative costs, etc.
Fixed index annuities provide triple compounding growth,
tax deferred.You earn interest on the
money you invest.You earn interest on
the interest you earn, and you earn interest on the taxes you would have
paid.You can elect to earn a guaranteed
income payment for the rest of your life that in some cases can increase
annually just when your medical expenses begin to increase.Insurance companies offer premium bonuses as
high as 20% on money invested within the first three years and in unique cases,
seven years.Regarding access to money
invested, you’re able to withdraw 10% annually without penalty.If you decide to withdraw the entire amount,
you can but would have to pay a declining surrender charge plus taxes.None of your money is invested in the market
so it is completely protected.
Just because everyone is choosing 401(k)/IRAs to invest
for retirement doesn’t make them the right choice.This is especially true for those that have
left 401(k)/retirement money at a former employer.The name of the game is to maximize your
Call me for a free consultation.It’s your money . . . until you give it away.
Business Shout Out!
The following businesses are now members of my Business
Advisory Council.All members have
proven to be reputable, fair, and committed to delighting their customers.Please join me in congratulating them!
Chef Carlos on the Square, AWESOME restaurant in Lancaster,
10 Minute Oil Change, HONEST car repair in Duncanville,
Buddy’s Sporting Goods, goto place for uniforms, sports
equipment, etc, in Duncanville, TX, 972-780-8149
Dry Clean USA, the dry cleaners that keeps me so fresh and so
clean, clean, Cedar Hill, TX, 972-291-9917
Did you know?
Dr. Thomas Stanley, author of The Millionaire Next Door,
and probably the foremost expert on the study of the affluent, suggests the
following formula to determine what your net worth should be at any age:
Net Worth = 10% X Age X Income
If you’re not there, I can show you how to get there.Call me for a free consultation.
Who is Your MVE - Most Valuable Employee?
In every business there is
someone or several that are the heart and soul of the enterprise.Especially in a family-owned and operated
business, these people embody the spirit of the business.The brand, reputation, and character of the
business reflect their personality.
Most of those that make their
livelihood in the business, pay their bills via the business, or pay for
college via the business, have never thought about what would happen if
this person unexpectedly passed away or was disabled.It is too painful and too frightening to
think about how everyone would survive.
These key individuals have unique
talents and provide the business a competitive advantage, influential
connections, and years of experience and would cause irreparable damage to the
business if something unexpected happened.
You can protect the business
against this loss using a key person insurance policy.This policy would provide a tax-free cash
infusion to help with recruiting a replacement or paying a salary during
disability.In addition, this insurance
policy can be structured to accumulate cash value that can be used tax free to
benefit the business along the way, even when no death occurs.
Call me today for a free
consultation.It’s your money . . .
until you give it away.
Did I mention . . .
If you own commercial property, and you're upside down on the mortgage, a member of my Business Advisory Council can help you refinance and
have equity in your property again.
If you own a residential property that appraises for over $420,000, and you're upside down on your mortgage, you too could refinance and have equity in your property again. Call or email me to find out how.
·Looking for a featured speaker for your group,
association, organization, small business, etc? I regularly present "the
10 Principles of Money Mastery" to organizations just like yours. Call or
email to make me your featured speaker!
Next issue, I plan to highlight individuals and businesses that can help you secure financing for the American dream - your own home. Stay tuned!