Market Notice From Our Cheif Investment Advisor

Market Notice Dated: April 16th, 2011 By: David Gimpel, MBA, CWPP, AAMS Chief Investment Advisor, The Maddox Group and President of Rational Capital Management The Coming Breaking Point: (Hopefully) The End of Quantitative Easing 2 In the last 2 years, the market has had a strong positive rally. In previous letters, I made the case [...]

How to Make Rain in a Financial Desert — Blog Post

This is an encouraging excerpt on how Doug Andrews talks about how people are using strategies that are protecting themselves in a volatile financial market: We’re heading into late summer…two-plus years into the country’s deepest recession since the Great Depression…and the mild optimism offered a few months ago may be drying up. In a move that recently made headlines, [...]

60 Minutes Feature: 401k Fallout

Did you ever think that your retirement account wouldn’t be there when you needed it most:

FOR RETIREMENT

My own mother is in the exact situation that the people in this 60 minute feature. What you will find when you watch the video below is that the 401k was NEVER meant to be a retirement plan in the first place.

The question is then, why is it that this is ” The American Way” for retirement planning????

Does Size Really Matter?

“Discovery consists in seeing what everybody has seen and thinking what nobody has thought.” – Albert von Szent-Gyorgyi

What you see is not always what you get. That’s why size really doesn’t matter when it comes to retirement income. The video in this post goes into an explanation but let me cover this and add a little more in a quick synopsis:

Many traditional strategies focus on having the biggest “pile” at retirement age and size doesn’t matter when:

* You don’t have access to your funds until retirement age, somewhere around 59, or you are hit with penalties
* Your tax bracket is higher compared to when you were working becasue distribution is taxed as real income and you have far less tax deductions in retirement
* You have a pile that will disappear when you exhaust it and don’t have the ability to “bankroll” itself”
* You think you have enough to pass on something to your heirs….until the “tax man” comes in and takes a majority

So, begin to take a look at the way you structure your retirement in a different way. See what other’s have seen and think what most have not thought. When we “follow the crowd” most of the time it really is just the easiest thing to do or, understand at that. What has happened in our economy in the past few years has made all of us take a step back, so we can now think “outside the box” for solutions to what we all now want:

A Happy, Healthy, Prosperous and Fulfilling Life in Retirement

What To Do With The 401k

With so many people changing jobs or facing unemployment during this economic upheaval, many Americans are faced with the question: What to do with the 401(k)?

In a recent article by The Associated Press on this topic, the advice was expectedly traditional: 1) leave the money in the account with the former employer (you can’t make further contributions, but your 401(k) will continue to go up or down with the market); 2) roll it over into your new employer’s plan; 3) roll the money over into an IRA; or 4) cash out the account and suffer the early withdrawal penalty and a mandatory 20 percent withheld in taxes (you’ll still owe more in taxes if you’re in a tax bracket above 20 percent, which most Americans are).

There is a better option. Implement a strategic roll-out of the money in your 401(k) and leverage True Wealth Asset Optimization tactics to put your money to work for you in maximum-funded, tax-advantaged insurance contracts.

With this strategy, it is possible to create new tax deductions that can offset some or all of the tax liability incurred during the roll-out process. But even if you do incur some tax liability, it is advantageous to get the taxes over and done with now when you are likely in as low a tax bracket as you will ever be, and when your money is worth more than it will ever be.

These maximum-funded, tax-advantaged insurance contracts can do more for your serious money than 401(k)s, IRAs or even Roth accounts, because they allow you to withdraw money tax-free (even before age 59 ?, without penalty). They also allow your money to accumulate tax-free, and when you pass away, your money transfers income-tax free to your heirs.

So if you’re contemplating the next step for what’s left of your 401(k), explore maximum-funded, tax-advantaged insurance contracts. It’s possible to protect your financial future so you never have to lose again.