Are there Any 401k Alternatives Available to Me?
[text_block style=”style_1.png” align=”left”]401k’s and IRA’s have their pro’s and con’s. However, often times government sponsored programs can make you feel trapped. They have strict rules, and most people are not aware that there are some very good alternatives to their 401k plan.
There are a few reasons that you could be fed up with your 401k and are now looking for 401k alternatives. A 401k, and also IRA’s, are market based investments, so many times people do not want to deal with the risk of losing chunks of money in an instant, out of nowhere.
Others are earning below 3% annually on their 401k, making it a horrible place to invest their money.
And there are still others who are afraid of taxes going up. If taxes go up in any way, then you are much more likely to pay higher taxes when you retire.
But no matter what your reason is, it can be hard to change. Why? Because finding good 401k alternatives can be hard. I want to take a look at a few alternatives, and then I want to show you what I think is the best options for your 401k or IRA alternative.[/text_block]
Stocks and Mutual Funds? Maybe Not…
[text_block style=”style_1.png” align=”left”]Stocks and mutual funds are usually the first place we look when we are talking about 401k alternatives. Why? Because, well, it’s usually the first thing we think about when someone says the word “investment.”
However, this usually isn’t a good alternative. Why? Because it doesn’t solve our problem. To turn around and put our money at risk, and usually even a higher risk than before, can be counterproductive.
Stocks are extremely volatile and can be a dangerous place to put your retirement savings dollars.
Mutual funds on the other hand are a little less dangerous but offer you less growth and usually have high fees that do nothing for you. Not making the list of the best 401k alternatives.[/text_block]
What About Bonds and CD’s?
[text_block style=”style_1.png” align=”left”]On the other side of the spectrum we have bonds and CD’s. These are going to be a safer place, so usually it will be preferred over stocks and mutual funds. It’s almost impossible to lose money and long term growth is pretty fixed, so you know what you are getting into before you start.
However, with taxes, the growth in these vehicles is whittled down to almost nothing. 30 percent taxes on a few points of interest is a huge cut out of your earnings. Some bonds are tax-free, which offers a good solution to the tax problem, however they are usually very low growth, but they are safe.
Bonds and CD’s can be a good alternative, but doesn’t one of our 401k alternatives fall in the middle of these two options.[/text_block]
A Better 401k Alternative
[text_block style=”style_1.png” align=”left”]I want to spend the rest of the time talking about what I consider the best 401k alternatives.
However, let me just name a few of the benefits here before I reveal my secret, and you can decide, based on the benefits, if you think it’s something you would like. Then, we’ll see if the products surprise you.
Some of the benefits include:
Tax-free retirement income
Tax-free transfer of funds to loved ones or heirs
5-6 percent historical growth (that’s tax-free growth so it’s comparable to 8-9 percent in the market)
Guaranteed to never lose money
Guaranteed minimum interest earned per year
Complete access to money whenever you want
Does this sound like something you would want?[/text_block]
[text_block style=”style_1.png” align=”left”]So, what are my most recommended 401k alternatives?
Cash value life insurance and annuities.
Now you may have never heard about cash value life insurance and how it works, and annuities are also misunderstood.
Each of these different options has its differing benefits. Also, each of these options fits different situations.
We have dedicated this site to these types of investments so you can understand more about them. However, if you want to skip all the text, we have already prepared videos and downloads that give you all the insight into how these investments work.
These are no cost to you, and you will receive them instantly just by signing up on the form below.[/text_block]