From the time you start working until the day you retire, every financial planner in America will tell you to put money in a Government sponsored retirement account. These are known as 401k/IRA/TSA and other plans.
Back in 2012 in my book The Great Wall Street Retirement Scam, I explain why Wall Street programs could never achieve the retirement objectives they were propagandized to deliver. Today there have been hundreds of 401k lawsuits filed against these plans.
“The Government has every retirement saver locking up money in accounts where the rate of tax is yet to be determined”
– Rick Bueter
More books have now been published which question the principles promoted by nearly every financial professional. Recently, The Public Broadcasting System recently aired a scathing documentary into Wall Street and retirement planning on its television program “Frontline”. Netflix recently presented the show Money where in one episode unveiled the shortcomings of the 401k system.
It appears that a conspiracy may be going on.
#1 – The 401k and Wall Street
From the day you start working until the day you retire, we are told by every financial planner in America to save for retirement in IRAs and 401k plans. Let’s examine that thinking for a moment. Not withstanding that the idea of retirement comes from socialist thinking, let’s say you follow that advice.
So for the next 40 years you save money in the Government sponsored retirement plans. During this time, your money is largely inaccessible. You have given up its use, control and liquidity as you can see in the bottom left corner of what we call “The Triangle of Confiscation”. You will begin to understand the title in a moment.
The bottom left hand corner of the triangle is where nearly 90 percent of the savings resides for working Americans with 401k-type retirement accounts. This means, outside of these plans they only have 10 percent of their money freely accessible. This illiquidity is making the banks rich. You will see why in a moment.
When it comes to fees in retirement savings plans Congressional Representative George Miller of California says, “You may have losses on these plans, but you will certainly have fees.” Just recently laws were implemented to require the full disclosure of these fees, and an average couple’s estimated lifetime fees could be over $150,0002. This could represent years of income for some people.
Think of the Freedom that is being lost through that money.
#2 – The Banks
Now move to the top of the triangle, to the banks.
During life you may have a need to make a major purchase such as a car, or a home. Because you were encouraged to save money in illiquid retirement plans through the lure of a tax deduction, you must now go to banks and pay them interest to use a stranger’s money. Quite possibly the money the bank loans you is your own money which is locked up in the Government sponsored IRA or 401k plan.
Because you have no access to your money in IRAs, and to a great extent other Government sponsored retirement plans, banks benefit through interest charged so you can finance the major purchases in life. Keep in mind, you might have a significant amount of money in a retirement plan, but you can’t use it.
Because of this lack of Freedom with their own money, over a lifetime average Americans will give up over $500,0002 in bank interest charges to use the money of strangers, instead of using their own.
Today, many of those who are retired and have saved money in this system are making the Government richer over the taxes they are now forced to pay on distributions they don’t need. Whatever resides in these plans after death, will then be dumped on the next generation who is completely unprepared to properly inherit this money. That generation will be boiled in the kettle by taxes on these retirement accounts.
That too is all about education. This is an unfortunate loss of one’s lifetime legacy of human effort. It is a feast for the Government.
Think about the minutes, hours, days, months, and years of Financial Freedom that is being vaporized in this system. The fees on 401ks, the interest charged by banks because you cannot use your own money, and the harvest of taxes on your savings all add up to lost Freedom. Freedom that is being vaporized by a Government sponsored plan.
Of course the idea used to promote these plans was that taxes would be lower in retirement, right?
But wait…there’s more. Think about this question for a moment.
Would you ever buy a car, sign a contract and drive it off the lot, WITHOUT knowing the purchase price?
How about buying a house?
Would you ever buy a house, sign a contract and move in without knowing the exact purchase price to the penny?
Now look at the bottom right corner of the triangle. That is the Government.
The Government has every person in America locking up money for retirement in IRA and 401k plans, where the rate of tax is yet to be determined.
You are buying something where you have no idea what it will cost you.
And… it’s your OWN money!
The Triangle Of Confiscation illustrates an economic system of money designed to attract, manipulate and control the wealth of Americans all for the benefit of the masters. It is a system for dependents that will pay dearly with their lives as the Government prints infinite amounts of money. It’s a system where American’s lives are siphoned through money by banks, Wall Street and Government with nothing to show for it.
This is America, Right? The land of the Free…
Is There Freedom If…
- The Government can change the rules to suit their needs?
- You do not have choice nor the ability to invest your money into ideas that might create more Freedom for YOU?
- You cannot get your money when you need it?
- If the investments within the system cause worry or fear?
- You can’t make your mortgage or car payment, and your own money is inaccessible to you?