10 Reasons Millennials should ditch the 401k
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.
The Bond Myth
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.
Dumb Money, Scared Money, and Smart Money
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.
Revisiting the College 529 Plan
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.
Had Enough Yet?
The S&P 500 is down 8% this year already — including another 2.2% Friday — in what’s been the worst start to a year ever. Since the market peak on May 21, 2015, the market has declined 11.7%.”
