09 Sep Why should you dump your 401K as fast as possible…is there something better?
There is a big myth that has been growing for decades…that the 401k money you have socked away is “your money.” It isn’t. You cannot get it when you want it when you need it, or on your terms at all! You don’t know how much will be there when you do need it and you don’t know how much you will be taxed to get it.
Many people were told that they will come out ahead tax-wise by deferring taxes but deferring taxes in a 401k could result in you paying more – much more tax – and that’s assuming the tax rates don’t increase any more than they already have.
Penalties!
There are numerous other drawbacks and pitfalls to the 401K. Like the withdrawal rules. The 401K withdrawal rules are very restrictive and non-specific to your individual needs. Cloaked with penalties, penalties, and more penalties …There are penalties for taking distributions before you’re a certain age, and penalties if you don’t take distributions after a certain age. You are required to start taking distributions when you’re 72, whether you want them or not.
You Bear the Risk of Loss!
If your 401K is tied to the stock market, you bear the RISK of loss!
You should not be subject to market risk when it comes to retirement planning and the need for guaranteed, predictable growth.
But, if your 401K money is invested in the equities market, you could lose some or all your money and have no way of predicting the value of your plan when you need to tap into it.
If your 401k has equities blended in it, your retirement account will be affected by the volatility of the stock market. To be more precise, how much of an impact the volatility has will depend on what funds your 401K is invested in, how much of the 401K portfolio is allocated to that particular (losing) investment, and when you plan to retire. You don’t want to be holding the bag when “the music stops.”
Increased Taxation – you will pay more tax on more value later!
Most of these drawbacks to 401K’s center around liquidity, control, and taxation – all of which are not in your favor or your control!
Withdrawals from traditional 401K’s and qualified plans (other than Roth-type plans) are taxable. The taxation of retirement accounts is changing – and not for your good! With the recently implemented “Secure Act” (along with any future diabolical changes Congress makes), we know that increased taxation for retirement withdrawals has already been signed into law. And under the current administration, we know that they have more of the same in store for baby boomers and savers. So, assuming you are successful in growing your nest egg, you will end up paying higher taxes on a larger number – and therefore pay more tax when you want to withdraw your money – leaving you with less for retirement!
Here is the GOOD NEWS!
You don’t have to play in the 401K sandbox stacked with rules made to take from you!
You can have Complete Liquidity, Control, and NO TAX!
With a Private Banking Strategies asset-protected vault, you can use your cash when and how you want to without penalty, tax, or any government intervention or reporting whatsoever. There are no penalties for early withdrawals and no penalties for late withdrawals.
There are no forced withdrawals and there are no minimum withdrawal requirements.
And most of all, there is NO TAX ON YOUR WITHDRAWALS …and NO TAX ON YOUR GROWTH!
You can create a predictable and guaranteed value that is COMPLETELY IN YOUR CONTROL!
With Private Banking Strategies, your retirement growth is predictable and guaranteed in an asset-protected vault. You’ll know the guaranteed value of your plan on the day you want to tap into it…and at every point along the way! With NO TAXES!
You need a carefully structured roadmap for your individual situation to ensure that you will have the retirement funds available when you need them.
Are you ready to protect yourself and your family’s future?