Americans weren’t supposed to.
In 1978 when the tax deferred products were introduced to America, the “public information” goal was that Americans weren’t saving enough for their individual retirement and these programs were just the ticket.
It was shoved down our throats under the guise of more favorable taxation at retirement than during the high-income earning years. So, tax breaks for contributing to a plan were the answer to sell it.
The truth of the matter is, increased taxation across the nation is THE number one method of funding out of control governmental spending, financing overseas conflicts and attempting to fill up the bucket of social Insecurity.
Getting Americans to willingly pay higher taxes via a governmental sponsored “retirement program” is a totally easily sell. It’s how we’re being duped every day.
As Americans neared 20, 30 or 40 years of making voluntary contributions and began looking forward to their “Golden Years” of retirement using the incomes waiting for them in their big fat 401(k)’s, 403(b)’s, and IRA’s, the disgustingly ugly truth reared its’ head.
The taxation rate is astronomical and exceeding at times 40%…in addition to the fund being depleted and running empty. ASSUMING, the losses due to the funds being at peril in risky stock market investments, managed to remain unscathed – which we all KNOW doesn’t happen. Remember 2008?
What happens to a retiree at say, age 78 who has exhausted all the reserves in their governmental sponsored retirement account? Look around and answer that yourself.
So, if Americans ceased to contribute to these plans, what would the damage truly be?
In circa 1981, numerous influential powers-that-be recognized the flaw in the programs and the horror was revealed. It was time to create a better plan. One which didn’t suffer from loss, was protected against legal incidents and would be able to be accessed at will regardless of age and void of taxation.
A solution was engineered and the results were kept secret. Only for use among the wealthy and their politically influential cohorts.
However, for those who DID learn of it, it was readily available, and on equal access as the wealthy.
More than three decades later, it still exists, performs better than every other investment in the country, and sadly, as the lack of financial education in our society runs rampant, the governmental sponsored programs remain touted as the source of financial security in the golden years of retirement.
So, if you fancy eating “Fancy Feast” cat food in your retirement, continue funding your tax deferred nightmare. Otherwise, contact us at APP and ask to learn more about how this plan works for you, your family and your friends.