Your 401(k) may cost you your retirement. Here's the truth:

A 401(k) is NOT the employee benefit you've been told.

The 401(k) was created by Congress as a tax-saving scheme for employers and highly-paid executives.

NOT for you.

That free money you get when your employer matches your 401(k) contribution isn't free.

How it works:

Your employer matches your 7% deduction that feeds your 401(k).

Hey, who doesn't like free money?

BUT, at the end of the year, you pay taxes on a 14% contribution(not the 7% you paid in), while your employer gets a 14% tax break.

Adding insult to injury, a 401(k) has 13 hidden fees that will drain up to 1/2 of your investment over the next 40 years.

Check your 401(k) prospectus: If you can find just 3 of those 13 fees, you're really smart!

                                           WHAT TO DO?

An Annuity is basically an investment in a large insurance company, one of the most stable business classes in the world.

The biggest appeal of an annuity is that it's tax-deferred.

A tax-deferred account means you'll pay applicable taxes at a later time, when your tax burden is much less.

Say you roll a $400,000 401(k) into an annuity.

Several things happen.

1- The insurance company invests your $400,000 in stable low-yield products (insurance has a very long-term outlook).

2- At your instruction, the insurance company will send you structured payments each month in the amount you request. For instance, you can request $7,000/month if that fits your needs.

3- At tax time, you won't pay taxes on the $400,000 invested. Instead, you'll pay taxes on the money received that year: $7,000 X 12= $84,000.

That is your taxable income for the year.

4- As you reach retirement age, you can pull as much from your annuity as you please; because you're now in a much lower tax bracket, you'll pay less for it.

All of this adds up to a program that grows your money at up to 3 times the rate of a bank CD, makes your money more available to you, and keeps the government out of your pocket until you're in a much lower tax bracket.

Please, don't hesitate to call us with your questions. There will never be a charge for our assistance or for a friendly, no-obligation chat.

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