Everyone remembers the theme song of Grease, “Hopelessly Devoted To You”. That 1970’s movie starring John Travolta and Olivia Newton John was a major hit. And another major hit of the 1970’s was the 401k and IRA to which so many are still hopelessly devoted. That is, until Congress removes the incentive to have a 401k and/or IRA in the first place! I’m talking about the elimination of the tax deferred contributions and tax deferred growth of these government promised programs.
“At a meeting with members of the Senate Banking Committee…ideas were discussed that would remove the pre-tax benefits from retirement accounts including 401ks and shift them to after-tax benefits according to people familiar with the discussions.”[i]
Wow! We couldn’t be happier, unless of course this idea actually becomes law. And the logical reason behind our happiness is that, those hopelessly devoted to 401ks and IRAs are perhaps the most deceived lovers of all time. Where else can you be hopelessly devoted with deferring taxes owed today because you volunteer to pay more taxes in the future? Where else can you wait, while inflation destroys the purchasing power of your dollar today, so you can spend more money while paying your taxes tomorrow? And finally, where else can you be so hopelessly devoted that you choose to pay taxes on the return of all your labors instead of on the beginnings of all your labors? Only when you are hopelessly devoted to your 401k, and/or IRA can you be that happy about any of these three options.
Obviously, we all desire tax free growth, unlimited contributions, guaranteed growth, multiple options and greater control over our retirement savings. And the good news is that all of these are more readily available to you without limiting your devotion to a 401k and/or IRA.
Wealthy minded families, individuals, professionals and businesses have been using a better system to build their retirement accounts for centuries. While the hopeless devotion to the 401k and IRA has sucked up billions of dollars belonging to those who believe that this guaranteed tax free method of savings is obsolete and no longer viable.
They couldn’t be more hopelessly devoted if they tried because the wealthy minded keep using these private contracts that have provided economic and financial stability, security and sustainability for centuries.
If you believe you might be hopelessly devoted to your 401k or IRA, but realize that you wouldn’t contribute another dime if you couldn’t claim a tax deferment on the contributions, then you might want to check-out what the wealthy have been relying on, instead of merely clinging to some government promise which politicians can change on a whim. Call 702-660-7000 for complete information about how you can benefit from something that is really worth loving…a private contract that gives you control, options, tax free growth and guarantees.