7 Lies About Retirement Options - Pay Attention MLM'ers!
7 Insights About Retirement Options
**Warning: As of this writing I am not a financial planner or licensed insurance guy, just sharing what I learned from my planner.
1. Keeping more than a few months worth of income in a bank account is stupid. It’s only slightly smarter than keeping cash under your mattress. You only earn 0-1% and it simply is not safe. It shows up in asset searches if you are about to be sued, and creditors and the IRS can get it if they want. (don’t worry, there are options)
2. The banks are making lots of money off of you, its better to be your own bank. The banks take your money, pay you 0-1%, then they invest in insurance policies and make 5-10%, then they lend it back to you via credit cards and loans and I don’t recall the last loan or credit card I got that only charged me 0-1% =)
3. Traditional IRA’s and 401k’s suck. So, traditional IRA’s and 401k’s allow you to write off your contributions as you put them in, so that is good right? Well, not when you realize that they tax you when you pull out that money. When you are older it’s at least possible that you may have less income coming in, and taxes will be higher. What you “saved” in 40 years of contributing could be paid back in 3-5 years because you are being taxed on the COMPOUND (assuming it actually grew).
For the other four insights, check out the full article below