Personal Finance Blog for Retirement and Investment Advice

Could the Government Seize Your 401(k) and IRA Money?

Is it far-fetched to wonder if the government could take control of your retirement savings in 401(k)s and IRAs?

Or is that just a paranoid conspiracy theory?

The fact of the matter is that it’s not far-fetched, or a conspiracy theory. The groundwork has already been laid.

And the government already gave banks the green light to seize your bank accounts.

Read on for the facts – and I urge you NOT to discount the importance and urgency of this issue affecting your hard-earned savings…

The Government Has BIG Plans for Your Retirement Savings

An article in American Thinker titled “The Feds Want Your Retirement Accounts” revealed that, “Quietly, behind the scenes, the groundwork is being laid for federal government confiscation of tax-deferred retirement accounts. Slowly the cat is being let out of the bag.”

And Bloomberg reported that,

The U.S. Consumer Financial Protection Bureau is weighing whether it should take a role in helping Americans manage the $19.4 trillion they’ve put into retirement savings.”

For the last 18 months, the Treasury Department has been testing the “myRA” program – which Obama created through executive order – no Congressional approval needed.

The myRA, which stands for “My Retirement Account” supposedly “guarantees a decent return with no risk of loss.”

And the only investment allowed in this account is a low-yielding Treasury security.

Of course, the Treasury wants to get more people signed up for this program, because it means more funds flowing right back into the U.S. Treasury to help the government meet its voracious borrowing needs. How convenient…

The Obama administration has also floated budget proposals that would limit how much you can accumulate in IRA’s, 401(k)s and other qualified plans. The government’s rationale: “Some individuals are able to accumulate… more than is needed to fund reasonable levels of retirement saving.”

So Now the Government Is Even Trying to Tell Us How Much Money Is “Too Much”!

Why are government-approved retirement plans such an attractive target for government control and ownership? For the same reason notorious hold-up man Willie Sutton gave when he was asked why he robbed banks:

That’s where the money is.”

Because the government created these plans, they know where your money is and how much you have there. And nobody knows what the next administration has planned for us.

Banks ALREADY Have the Authority to Seize the Money in Your Accounts

Few people I’ve talked to are aware that the 2010 Dodd Frank Act ensured that financial institutions will not be bailed out by taxpayer dollars in the next crisis. Instead, they will be “bailed in” by shareholders and anyone unlucky enough to have deposits in those banks.

The bottom line is that the next time your bank fails, you become a shareholder, NOT a depositor – and your deposited money will be used to save the bank. Your money won’t be insured by the FDIC then, either.

So How Can You Protect Yourself and Your Hard-Earned Savings?

The solution is to keep very little money in the banks – only enough to pay for current expenses.

All excess cash flow should be swept into an alternate savings vehicle that gives you safety, privacy and control of the money you put in it.

Carefully weigh how much money you’re willing to put into government-controlled retirement accounts (IRAs, 401(k)s, 403(b)s, etc.).

Because once you put your money into those plans, the government controls it, not you!

And the government can – and does – change the rules and restrictions anytime they want. And you have no recourse.

There’s no telling what politicians may be scared or intimidated into doing in the next financial crisis.

10 Reasons a Bank On Yourself Plan is the BEST Place to Store Your Money

The Bank On Yourself method relies on a super-charged variation of an asset that’s never had a losing year in more than 160 years: Dividend-paying whole life insurance.

Here are 10 reasons a Bank On Yourself plan is the best place to warehouse your money:

  1. Life insurance policies are private “unilateral” contracts. That means the company can’t change the rules unless you agree to it. That’s the law.
  2. With a Bank On Yourself plan, you have privacy. Your plan and its growth are generally not reported to the IRS or the government.
  3. You have “first right of refusal” to the cash value in your plan – the company can invest it only if you choose not to exercise your right to use it. (This video reveals how you can bypass banks and become your own source of financing.)

Did you know the typical family could increase their lifetime wealth by $500,000 or more simply by running major purchases through a Bank On Yourself plan, than by financing, leasing, or even directly paying cash for them?

Find out how much your wealth could increase – without taking on more risk – when you request your free, no-obligation Analysis.

Yellow-Button-FREEanalysis-trans

  1. You can’t be turned down when you want to access your cash value, and you don’t have to apply or qualify for it.
  2. You can pay it back on your schedule – not someone else’s – with no fear of collection calls, late fees or any of that nonsense.
  3. If your policy is from one of a handful that offers this feature, you’ll receive the same guaranteed annual cash value increase and dividends as though you’d never borrowed a dime from your policy.
  4. Both your principal and growth can be accessed with no taxes due, under current tax law.
  5. You’ll get growth that beats the interest you can earn in a savings or money market account or CD by a country mile.
  6. And you’ll – finally – be able to know the minimum guaranteed value of your retirement savings on the day you plan to tap into them, and at any point along the way.
  7. You’re in control of the money in a Bank On Yourself plan – not the government, not Wall Street, not the banks, and not an employer!

Discover How You Can Benefit from a Custom-Tailored Bank On Yourself Plan…

No two Bank On Yourself policies are alike – yours would be custom tailored to your unique situation and your financial goals and dreams.

You’ll know your bottom-line guaranteed numbers and results before you decide if it makes sense to add the Bank On Yourself method to your financial plan.

Just request your FREE Analysis and Recommendations now.

Yellow-Button-FREEanalysis-trans

The biggest regret people say they have about Bank On Yourself is that they didn’t start sooner. I’d like to make sure that’s a regret you don’t have. Take the first step today here.

Dalbar 2016 Report: Many Investors Haven’t Even Kept Up With Inflation

The latest report from DALBAR reveals the harsh reality about the actual returns stock market investors have been getting for the last 30 years.

Would it surprise you to know that many investors haven’t even been able to keep up with inflation for the last three decades?

Many investors haven’t, according to the 2016 Quantitative Analysis of Investor Behavior.

Here are the facts about actual long-term investor returns

The average investor in asset allocation mutual funds (which spread your money among a variety of classes) earned only 1.65% per year over the last three decades!

These investors didn’t even come close to beating inflation, which averaged 2.6% per year.

The average investor in equity mutual funds averaged only 3.66% per yearbeating inflation by only 1% per year. (Was that worth the roller-coaster ride and sleepless nights?) [Read more…]

What’s In “The Big Black Book of Income Secrets”?

If you receive emails from investment advisory services, you may have gotten a sales pitch for The Big Black Book of Income Secrets from the Palm Beach Research Group.

The promo promises you’ll discover “30 unique income tools” in The Big Black Book of Income Secrets.

The offer entices you with a “risk-free 60-day trial subscription to the Palm Beach Letter.” If you’re not satisfied before the two-month trial is up, you’re told you can get a refund and keep the book and some “bonus” reports that are included in the offer.

To find out if The Big Black Book of Income Secrets lived up to its promises, we signed up for the “Platinum Subscription” for $99 for the first year, which comes with additional “bonus” reports.

Three weeks later, the book arrived, containing 22 (not 30 as promised) strategies, with a cover letter from the Publisher, Tom Dyson, explaining that we could log into their website to access the reports we signed on for and back issues of the Palm Beach Letter. (I guess for $99, they can’t afford to mail you hard copies of the reports.)

The First Red Flag in The Big Black Book of Income Secrets is “Income For Life”

[Read more…]

Do You Have As Much Saved for Retirement As the Average Person?

How do you think you compare to other people when it comes to how much you’ve saved for retirement?

The results of a new survey from the Employee Benefit Research Institute (EBRI) reveal some surprising insights into America’s preparedness for retirement.

Read on for the highlights of the 2016 Retirement Confidence Survey and a 6-Step Action Blueprint to make sure your money lasts as long as you do…

The survey revealed that 54% of all workers report less than $25,000 in household savings and investments, excluding the value of their primary home.

That includes 26% who say they have less than $1,000 in savings.

10% have between $25,000-$49,999 saved, 10% have between $50,000 and $99,999 saved, and 12% have between $100,000-$249,999.

And how many have saved $250,000 or more? Just 14%.

Are people close to retirement any better prepared?

[Read more…]

The Ticking Tax Time-Bomb of Conventional Retirement Plans

One of the biggest selling points of 401(k) and IRA retirement plans is that the money you put into them isn’t taxed right away. Bring out the bubbly to celebrate, right?!

Not so fast.

First of all, some people – hopefully not you! – mistakenly believe money placed into these retirement plans is “tax free.” It isn’t. It is “tax deferred,” meaning that you will pay tax on that money when you withdraw from your retirement plan down the line.

Deferred taxes might sound good, but deferring your taxes is like putting off a visit to the dentist. The problem compounds and will only get worse.

Deferring taxes creates a dangerous potential tax time bomb because you don’t have the answers to two critical questions…

First, what will the tax rates be when you retire? And what will they be 20 or 30 years later?

[Read more…]

Is Your Money Frozen in Your Retirement Plan?

One of my biggest beefs with government-controlled retirement plans, such as 401(k)s, IRAs, 403(b)s and Roth Plans, is the total lack of liquidity. The money you’ve socked away in your conventional retirement plan is about as solidly frozen as the iceberg that sank the Titanic! And because of this, if your financial ship hits rough waters, you might end up sinking as well.

Here’s the critical question: How quickly and easily can you get your hands on all the money in your retirement account if you need it before age 59½?

We all know life happens. Cars break down. Roofs need replacing. A tough medical diagnosis can create mountains of unexpected bills to pay.

Every year many participants in employer-sponsored government-controlled retirement plans make early withdrawals for a number of reasons. And every year, the IRS collects penalties related to those early withdrawals.

In fact, in the last year for which statistics are available, the Internal Revenue Service collected $5.7 billion dollars in penalties from Americans who took out $57 billion from their retirement funds before they were supposed to. [Read more…]

Who’s Got Control of Your Retirement Plan?

Do you remember playing with that kid in the neighborhood who set up a game, and then changed the rules as the game went on to suit himself? Just like those games, you’ll never come out winning with your retirement plan if someone else sets – and constantly changes – the rules!

Here’s one of those inconvenient truths: When your retirement savings are in a government-controlled plan sponsored by your employer, your employer can change the rules at any time. And so can the government.

Despite the mass of paperwork your employer handed you when you first began your retirement plan, your employer’s retirement plan rules are not set in concrete. Employers can change their rules, even in midstream.

For example, not too long ago, IBM decided to change its retirement plan rules. Up until that time, IBM gave employees their 401(k) match with each pay check. But some smart bean counter pointed out that Big Blue could save a bundle if they waited to give the match until the very last day of the year instead of throughout the year.

So what’s the big deal?

[Read more…]

What Infinite Banking and Nelson Nash Missed

I am infinitely grateful to Nelson Nash for introducing me to the Infinite Banking Concept®. It’s a very powerful concept that brings to the table Nelson’s life-long study of the Austrian School of Economics.

In this article, I described what Nelson got right about this concept, and my own life-changing experience of how it lets you “Become Your Own Banker.”

However, here are several things in his ground-breaking book that I take issue with, and that have caused unnecessary confusion for readers…

1. His first book, Becoming Your Own Banker®, was copyrighted in 2000.

[Read more…]

What Nelson Nash and Infinite Banking Got Right

My introduction to Nelson Nash and the Infinite Banking Concept® was a major turning point in my life.

Up until then, I was a business-building consultant to financial advisors. The advisors I coached were always bringing financial products and strategies to my attention, and over the last 25 years, I’ve investigated more than 450 of them.

Unfortunately, most turned out not to be worth the paper they were printed on.

Finally, one financial advisor asked me if I had ever heard of Nelson Nash, and the book he wrote, Becoming Your Own Banker: The Infinite Banking Concept.

I had not, but it sounded very intriguing, so I called and talked to Nelson and ordered a copy of his book. [Read more…]

Who’s the Bozo Administering Your Retirement Plan?

When you have a plumbing issue, you call in a qualified plumber, right? When you need a medical procedure, don’t you want a qualified doctor? When you go to get your car fixed, aren’t you going to hand it over to a qualified mechanic?

So why would you turn your retirement plan over to an unqualified administrator?

Wait! You didn’t know that you’ve placed your hard earned retirement money in the hands of someone who very likely doesn’t know what they’re doing? It’s one of the common retirement planning traps I’ve been covering in this blog.

According to SmartMoney magazine, 90% of the country’s 401(k) plans are watched over by people who “need no special qualifications and no investing expertise or experience.” [Read more…]