One of the problem business owners have - especially small business owner - is how to set up their retirement plan without having to provide it for the whole world! If you try to set up a 401k or other Federal plan you have to include your employees. Now as a small business owner myself, I want to look out for my employees I GAVE THEM A JOB! But when I think about the extra cost of setting them up with a 401k it's out of the question; especially in these turbulent financial times. I HAVE A SOLUTION! But more about that later; first lets look at the problem.
THE PROBLEM!
When the Feds came up with brilliant idea to allow 401ks, they also included certain negative features that, in my opinion, are not good for you OR your employees.
* First of course, if you do it for yourself, you have to offer it to employees.
* Second there are limits on how much you can save.
* RISK! The biggest problem I see is that what you can save is at risk of loss, as in most cases your money is IN the market.
* You can't touch the money till your 59 1/2 without a 10% penalty and of course pay the tax.
* It's tax deferred but that only postpones the tax AND the tax calculation.
* Related to this is the fact not only can't you touch the money till your 59 1/2 you HAVE TO TAKE THE MONEY OUT as a Required Minimum Distribution at 70 1/2. Why? Obviously because the Feds want the tax.
Do you think they came up with the new Roth conversion out of the goodness of their hearts? They wanted to accelerate the payment of the taxes on IRA's - to do the conversion to TAX FREE you first have to pay the tax on every dollar.
* Taxable to your heirs. In most cases they'll be forced to take a lump sum distribution costing them 50-80% in taxes depending on your estate tax situation. Wouldn't you like your heirs to get more the 20% of what's left?
SO WHAT'S THE BIGGEST PROBLEM HERE? T-A-X-E-S! So lets look at the tax issue.
Did you know that average tax percentage since the inception of taxation is around 65%? We're currently at one of the lowest times in history a good time to pay the tax on the seed rather than the harvest. Did you know the highest tax bracket ever was in 1945 at 94% for those making over $200,000? At that time the deficit was ONLY $2 trillion. Now the deficit is over $13 trillion and still climbing.
With the Federal debt growing, what does the government need more than anything? MONEY! So let me ask you, "DO YOU THINK TAXES WILL BE GOING UP OR DOWN in the future?" If taxes do go up, you'll pay tax not only on the contribution but also on the gain and, if your an employee, on the match. So again I say it's a good time to pay the tax and move to a product that will be TAX FREE moving forward.
THE SOLUTION!
Before I tell you the name of the product let me tell you the benefits... you know... build the suspense. (NO PEEKING!)
* GUARANTEED NO LOSS (unlike market risk products)
* Tax Deferred grow (no 1099)
* TAX FREE INCOME at retirement
* TAX FREE to your heirs
* Competitive internal rates of return
* Creditor proof
* Available as collateral
* LIQUIDITY, USE AND CONTROL (no age limitations, access cash at any time)
* Living benefits for Disability, long term care, terminal illness
So what is this miracle financial savior?
AN OVER FUNDED INDEXED UNIVERSAL LIFE INSURANCE!
SAY WHAAAAT! You read it right. A properly structured life insurance policy can do ALL this.
Life Insurance was designed for LIFE BENEFITS not just death benefit. True, Life Insurance is designed to replace your income if you die so your family can continue on but it can accomplish sooo much more as you can see.
This is perfect for the small business man because you DON'T have to provide it to your employees. Since I know you have a big heart and would want to help them, the good news is all you have to do is offer them the same opportunity I'm offering you and they can save for retirement just like you but YOU don't have to pay for it.
I know this is a new concept for you and there's a lot more detail I can share with you but we'll save that for a face to face meeting. Just contact me to find out how this might fit into your retirement plan
Safe Saving,
Roger
Roger Ely offers safe money retirement strategies to help you maximize and convert your retirement savings into retirement income guaranteed for life, provide for continued growth, help over come Long Term Care costs, and guarantee you Never Lose Another Dime! More information is available at http://letstalkretirement.com. Don't forget your FREE consultation!