401 - Not OK?
The 401K is perhaps the most popular savings tool today. It comes with impressive sounding benefits such as ‘tax deferred savings’, and ‘no fee management’. Unfortunately, there are many factors you may not have realized when you signed up. Whether you currently have a 401K or are considering one, Jay Beattey’s book is a ‘must read’.
In today’s market, there are products and options that are far superior to the now 45 year-old qualified plan – plans that are not one-sided partnerships.read more
Bonds are generally regarded as tax-inefficient because the interest payments are always taxed as ordinary income – the highest rates in the code. Unless of course, you buy tax-free municipal bonds. But it turns out those aren’t so tax-free either.read more
More and more savers are discovering that insurance products uniquely fit the bill – particularly indexed life insurance and indexed annuities. In fact, much of the money that has fled the market in the last several months is finding its way to insurance companies because of their feature set.read more
We are advocates of a plan that is also funded with after-tax dollars, and like the 529 plan, is accessible tax-free. It doesn’t generate a state tax credit, but it also eliminates any FAFSA penalty, and those tend to cancel each other out.
Where our plans really shine is that they are not exposed to market risk, and they can be used for any purpose – college, starting a business, travelling the world, or starting a killer long-term tax-free retirement account.read more