Friday, May 18, 2012

401k Alternative

Private Banking as a 401k Alternative


401k’s, and IRA’s, have become the traditional investment for most Americans. However, after comparing Infinite Banking to these government sponsored plans, it becomes clear why banking is such a strong substitute. Let’s take a look at these two vehicles side by side.
401k
Tax Deferred Growth
Tax Deferred Contributions
Employer Match
Contribution Limits
Volatile Market Investment
No Guarantees
Management Fees
No Liquidity without Penalties
Little Control
Few Options
Privatized Banking
Tax Free Growth (if handled properly)
Post Tax Contributions
No Contribution Limits
No Risk
Guaranteed Floor Return
No Hidden Fees
Liquid
Total Control
Death Benefit
Tax Free Transfer to Heirs
Tax Advantages for Business Use


As you can see, a 401k is going to have some attributes that the private banking system won’t have, such as an employer match and use of pre-tax dollars.
However, there are many qualities of private banking as well. Your money isn’t tied to the markets, so you have no risk of losing money.
Private banking puts you in control of your money. You are free to borrow out dollars and use them for the things you need, such as cars, home repairs, investments, etc.
Also, if treated properly and setup by a professional, your private banking system will never be taxed again. With a 401k, you are taking a chance on future tax regulations.
No matter what you choose, having all the information is the only way you can make an informed decision.

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