Maybe you have been faithfully contributing to your 401K for years. Maybe you have a decent employer match. Maybe your balance has grown enough that you think, “I have this retirement thing covered.” Have you ever asked yourself, “How much of my 401k is really mine?!”
Let’s look at why your balance may not be what you think…..
- Most 401k funds are tied to the stock market
What is real wealth? Real wealth is money that you can access and control. When your money is locked up in a 401k plan or similar retirement vehicles, there are numerous rules and restrictions to your access. But the biggest issue is your balance is just a number that is at the mercy of the market. In the last 25 years, we have seen two significant market crashes. Can you imagine getting ready to retire and there is a market crash?! Close your eyes and imagine your account just dropped 30% – how do you feel? Horrible, right? It has happened to many people, and their retirement dreams are gone forever.
- Taxes
We do not know what the tax rate will be when we retire. Our national debt continues to climb, we have an aging population, and the baby boomers are leaving the labor force in droves. A significant portion of your nest egg will disappear when you start withdrawing your funds. Take another look at your balance; now subtract another 25%, 30%, or?? %. This uncertainty about future tax rates should make you concerned about the potential impact on your retirement savings.
- Vesting
How long have you worked for your employer? Does your plan have a vesting schedule? Do you know what a vesting schedule is? A vesting schedule is the length of time before your employer’s match all belongs to you. Many people change jobs every 4-5 years. If you are looking at your retirement account balance and it includes an employer match – all that money may not be going with you when you leave – it is not unusual for a vesting schedule to be 3-5 years. It is your responsibility to ensure you are aware of your employer’s vesting schedule.
By now, you should be asking yourself, “What can I do about this?” So glad you asked!
It is vital to have a portion of your retirement savings in a plan that you own and control and that is NOT tied to the stock market.
An infinite Banking Plan is a perfect way to build your safe and predictable wealth for retirement. Here are just a few of the many advantages:
- There is ZERO risk. Your funds are not subject to the market’s ups and downs, and your principal and growth are contractually guaranteed!
- Under current tax laws, you can take tax-free withdrawals, so you know precisely your number and don’t have to worry about changing tax rates eroding your hard-earned savings.
- There is no vesting schedule or limitations to how much you can contribute.
- You have a valuable tax-free death benefit for your loved ones should anything happen to you.
- You can access your cash value for any reason you choose, unimpeded by employer or government rules, limitations, conditions, or restrictions!
If safety, security, and certainty are important to you in your retirement dreams, you owe it to yourself to learn how the Infinite Banking Concept can be a key component to your financial life today and in retirement. This concept uses a financial tool that has been around for more than 150 years and has had growth every single year, even during the depression, world wars, recessions, pandemics, and market downturns.
Call me today, and we can discuss how you can avoid the typical retirement fund nightmares and rest easy at night with a proven strategy in place.
