By Tony Treece
In society today we are often passively sold the idea that leaving it to the professionals is the best idea. We are told this in school. “The teacher knows best.” We are told this at the doctor’s office. “Follow the doctor’s orders!” Even at church we are often told what the Bible says but seldom actually read what it says. Leaving it to the preacher to feed the information to us is not always the best plan.
Naturally, when it comes to selecting our retirement plans, most people normally go along with whatever their company’s human resources department has said is the best plan. Sometimes this works out for people in the long run. However, other times this turns out terribly wrong. Would you like to have guarantees in your retirement plan? My academic background is in theology, which has required hours of Bible study. Any time I have noticed a promise in the Bible, it always grabs my attention!
It may sound to some people that this is too good to be true, but you can direct your retirement planning in such a way that you have promises that you will have an income for the rest of your life. If you doubt what you are reading, it is probably because you have bought into Wall Street propaganda that has been perpetuated through the media.
Wall Street is a huge machine that has destroyed retirement plans for millions of Americans. If your money is in the stock market, you cannot have complete peace of mind. The reason why is simple. You lose sight of your money and this generates anxiety and stress for many investors. The good news is you can rid yourself of this unneeded anxiety.
Have you ever looked at the reports of a 401k? What are your options inside of a 401k? Which one should you have your money in? It’s like a blind trust. You put money into it and hope for the best.
That is not the way a professional approaches a planned retirement account. Unfortunately, Wall Street does not have the answers or the solutions. However, they are not telling anyone that they are clueless as to what it requires to guarantee you the investor an income for as long as you live.
Insurance companies have been guaranteeing / promising clients that they will have money when they need it most for over 100 years. You will never learn this startling fact by following the mainstream media.
There is a huge political battle between Wall Street and the insurance industry. Congress writes tax laws that 401k retirement plans function under.
Insurance companies are in a different position than the Wall Street investing schemes. They are in the business of certainty, guarantees, managing risk, and with insurance companies it is all about integrity.
How many grieving widows do you hear about not getting their life insurance death benefits? The fact is that insurance companies have always paid what they owed, even during the Great Depression. When the stock market collapsed and banks closed, insurance companies thrived.
The media is the worst place to get financial advice and retirement planning advice. Take note of whom the advertisers are. That is the slant they will have.
When you are concerned about your retirement future, recognize the two systems of retirement. Wall Street is one system and the insurance companies system is the other.
The fixed guaranteed insurance companies have created guaranteed retirement security for over 100 years. Why has Congress not mandated insured retirement accounts for 401k plans?
Wall Street influence has not allowed Congress to pass such laws. The government skims fees off Wall Street 401k plans. If there had been insurance guaranteed retirement funds inside 401ks people would have transferred their money out of the stock market before the major declines.
They would have avoided losing 40 to 60% of their life savings, but this would have caused the government to lose fees from Wall Street investments. Imagine the strain Wall Street would have felt.
We at TreeceCo believe we can make a difference by helping people secure their retirement plans and have a guaranteed income for life.
Let’s take a look at how 401ks became prevalent in America. If you could sit down with your parents’ pension plans, you would see that they knew what their benefits would be at retirement. This was called a defined benefit plan.
Wall Street folks do not want you to understand that life insurance providers are in the business of guarantees. Life insurance proceeds will pay a death benefit, and protected principal investments are used for pension planning and peace of mind.
During the 1960s and 1970s, America saw much growth and this presented massive challenges.
“No load mutual funds” with discounted brokerage fees became prevalent. Wall Street grew desperate during this period from bankruptcies, mergers, and receiverships, so they approached Congress. As a result in 1974 the Employment Retirement Income Security Act (ERISA) was passed into law.
The law included tax credits for enrolling in an Individual Retirement Account (IRA). If you put $1,500 in, then you received a $1,500 tax credit. This was a scheme that benefited the government, because Wall Street became the gatekeepers in overseeing retirement accounts.
Upon starting a new job, many people have 401K paperwork slid over to them to sign. Their companies wants them to begin saving for retirement, and they will deduct it from your paycheck.
Do you recall Enron? The company went bankrupt and their employees lost their jobs. Many times companies offer 401ks and a large portion of the funds inside their 401k are invested in the company’s stock. When the company becomes insolvent and goes bankrupt, people not only lose their jobs but also their retirement savings.
From the 1980s to 2000 we experienced an ERISA bull market, and in 2000 many will recall the technology bubble that popped. Much money was lost during this period because many people had technology stocks in their retirement savings.
Shortly after the technology bubble we experienced the mortgage meltdown. As a wealth management professional whose career started in the mid-1980s, I recall all these events all too well.
In 2009 we saw people in their 60s and late 50s who lost 40 to 70% of their retirement savings. Wiped out! These were the funds they were planning to use for retirement. It was heartbreaking seeing people who had their retirement dreams shattered.
After I have explained these things, a question I find people have is, “Why is the average American destined to fail when they use Wall Street investing schemes?”
The general public believes and trusts exactly what the government tells them. When the government has that type of innate power it can perpetuate any propaganda it desires.
We do it to ourselves. The inherent problem is that 401ks are limited to Wall Street investing tactics. Who assumes responsibility for the gains or losses? You do. To make matters worse, the mutual fund companies never lose! You pay a fee whether you win, lose, or break even.
The only way you move your money is if you lose your job or you retire. The good news is that some employers allow in-service transfers of some of your 401k money. TreeceCo can guide you through this process.
Mutual fund companies cannot guarantee / promise you that in 40 years you will have any type of savings. They will not offer you any type of education or investing advice on how to manage your portfolio. They just want you to keep paying fees for them to gamble with your money.
The local stock broker will assure you that the Security and Exchange Commission (SEC) and the Financial Regulatory Authority (FINRA) will be the watchdogs. Wall Street influences Congress which runs the SEC which oversees FINRA. Wrap your mind around the greed and power that flows through this hierarchy. If Wall Street cannot get paid, it will never see the light of day.
Remember Barney Frank, the retired Congressman from Massachusetts who sat on the Financial Services Committee? A little research reveals that many mutual fund companies hail from his home state.
I have to believe that those companies are the ones who helped fund his political career. After all, the amount of money spent on lobbying in 2012 was close to $4 billion.
The United States citizens are the largest mutual fund holder. We hold approximately $11.6 trillion and worldwide mutual fund holdings consist of approximately $23.8 trillion. It becomes evident why Wall Street wants to control the 401k market. Envy, greed, and deception become dominant players when entities feel they can vie for a portion of the booty.
Let’s make this applicable. In saving for retirement, have you ever lost money? How do you intelligently choose 401k investments? Do you really know where 100% of your money is invested at all times? Do you think you have a secure plan for retirement? You should be able to answer all four of those questions.
After sitting with countless people over the years, I have concluded that few people actually have any idea where their money is. Disclosure is the problem.
I once read that each 401k plan should have the following disclosure. “The outcome and success of your retirement income is your responsibility. The investments we have given you to use over the next 40 years may or may not be good ones. The assurance of a secure retirement income for life is not guaranteed. There are other options, but we are not required to tell you about them.”
The problem with this is Wall Street depends on you being ignorant. The propaganda by Wall Street perpetuated by the magazines, newspapers, and television has been fed to the masses for years. Wall Street is not telling you that they do not have the solutions to be able to guarantee / promise you will have anything during retirement.
The solution to being able to secure your retirement is to transfer your Wall Street IRA / 401k to a guaranteed protected principal IRA. If you have an old 401k or other retirement accounts, transferring those to a guaranteed fixed income solution will greatly enhance your quality life.
Wrap your mind around the idea that a protected principal investment is really the most appropriate instrument for an IRA. It can be a guaranteed pension income for life. Plus, it is not a taxable event if done in the proper way.
The protected principal investment puts your money on auto pilot so that when the financial markets move up, so will your money. When the markets go down you will lock in to the gains while retaining your current position. Protected principal investments have protected billions of dollars that could have been lost if invested in Wall Street.
My favorite feature of a protected principal investment is the feature that guarantees you a lifetime income when you are ready. You determine what your guaranteed income will be. If you understand that financial security and retirement is about income, the income for life feature will be well received.
With the knowledge you have now been equipped with, I have a question for you. What are you going to do about it?