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Personal Finance, Retirement

Biden has a Plan to End 401k Benefits

Joe Biden has a Plan To End 401k Accounts

Have you heard about this? I can see why. Change is needed.

The national debt is ticking right along at 28.6 Trillion. That’s a whole lot of money. I do not think most Americans appreciate that number fully. Most of our brains are not wired to recognize that many zeros, 12 in fact. 28,000,000,000,000.

30 trillion in debt

But still, it’s just a number to most of us.

Trying to wrap my own hands around it is nearly impossible. That’s $85,958 of debt per U.S. citizen or $227,474 per debt for every U. S. taxpayer.

Still doesn’t register.

Dumb it down for me. How about thinking of just $1 Trillion of the $28?

Well 1 trillion seconds is also equivalent to 31,688 years which takes us back to Neanderthals. Yes, that is a fact. That is 24,000 years before the earliest civilizations.

But unfortunately, I still can not comprehend that amount. I guess you get the point.

Our country is in a lot of debt.

How are we as a country going to make it when our revenue per citizen is only $11,476? You can’t owe $85,958 when you are only taking in $11,476 for very long.

Extreme changes have to be made.

Joe Biden wants to end tax benefits for Americans with an IRA or 401k. 

You can see why. The government spending is clearly out of control. Biden is looking to pull the rug out from under all the hard-working Americans.

Forbes magazine recently commissioned a study and spoke out against the Presidents intentions.

If you have retirement savings you can not afford to lose you should pay close attention. Because the implications here are catastrophic.

You see, Joe Biden wants to raise $3 Trillion more in new taxes.

And he is gunning for your retirement accounts to help him do just that. This is not the first time then-Senator Biden has found new ways to tax retirees.

He voted for a 50% tax on Social Security. His vote was instrumental in ramrodding retirees with an even higher 85% tax. Not only that but you hear all this talk about radical “Wealth Redistribution

You know what that REALLY means right? 

The Democrats are pushing his massive tax hikes through congress while they still have a majority.

This is why most Americans approaching retirement are feeling helpless. They understand, they know, the President is making them foot the bill.

If you are like most Americans your IRA, 401k, 403B whatever you use to save for retirement took a big hit in the 2008-2010 crisis….

If you think that was bad you haven’t seen anything yet. Financial experts are predicting a “financial repricing” unlike any other. 

We are coming upon the 3rd worse 5-year period to retire in my 30 years of being a financial advisor.

  • Trump tax cuts expire in 2025.
  • The Stock market is up over 410% since 2009. 
  • Our Monetary policy is a hockey stick (it’s so bad they are discontinuing publishing the chart.
  • COVID-19, now the D variant threatens to lock the democratic states down.
  • Trillions of debt went into spending trying to save the economy from the Covid collapse and now
  • Trillions more is lined up to be spent as of last week
  • Fed is tapering its $120 Billion a month buybacks of treasuries and mortgage-backed securities with a complete stop next year
  • inflation is running rampant moving the cost of goods up double digits in just 1 year.

It’s Not That Big of a Deal if the Stock Market Pulls Back – 50% ¯_(ツ)_/¯

It’s been one historic run. Things have to come down to go back up. Trees do not grow to the sky…

What is a big deal is this: If you are retiring in the next 5 even 10 years and your $1 million turns to $500,000 and on top of that, you’re pulling out $40,000 – $50,000 to live on. 

You’ll never see that million again. Ever. Poof. Gone. Please do not discount that statement

If you’re invested in the stock market directly in stocks or mutual funds and not taking a 30% to 50% reprice in current valuations into your retirement projections you could be in trouble. 

By the way, you still have to pay income tax on that repriced $500,000 too. About 30%. You can do the math.

It Doesn’t Have To Be That Way

You do not have to sit back and let the IRS ravage your hard-earned nest egg. Because if the stock market doesn’t take it the IRS sure will.

The IRS loves your IRAs, 403b’s, and 401ks…..

Do you know, $1 million in an IRA or 401k at just a 5% return will pay nearly the same in TAX as the original value of the account through retirement and death?

Yep, Your $ 1 million retirement account could generate $1 million (or more) in taxes for our government. It’s absolutely stunning. That’s with the current low tax rates.

Contact us to get your own Retirement Tax and RMD Report to see how much revenue your account will generate for our Government

Oh, But I have ROTH IRA So I will be good!

Those may be famous last words as the recent Peter Thiel move has brought the few ROTH advantages back into the crosshairs of Congress.

What could the governement do?

Congress could easily impose RMD’s (Required Minimum Distributions) or include ROTH IRA distributions in Modified Adjusted Gross Income when calculating taxes on Social Security benefits, or a Medicare premium surtax. Any or all.

Trust me when I tell you…… they are trying to tax your social security without taxing your social security. 

You can protect yourself from both Taxes and Market Losses. Now is the time to be making big money moves.

✔ Moving from Tax-Deferred vehicles to Tax-Free.

✔ Moving from things that are not keeping up with inflation to things that are.

 ✔ Moving money from things that are not guaranteed to guaranteed.

✔ Locking in these big historic stock market gains before it’s too late and your retirement account is repriced with the rest of the stock market.

If it’s one thing I learned from participating in the last two stock market crashes is this:

1️⃣ EVERYTHING goes down that’s not guaranteed and I do mean everything
It doesn’t matter how protected, how conservative, how balanced you think your portfolio is. It’s going down in a correction.

2️⃣ most people do not do anything until they are forced or reach the panic stage. It’s just their nature. They are reactive.

Stock market investors have been lucky for 12 straight years.. and it’s just that L U C K. Be Proactive.

You can still make a whole lot of money with very little risk.

If you are interested in a conversation to see what are the right money moves for you contact us. We will help you take back control of your retirement. 

There is a very limited amount of time. Tax Rates are the lowest they have ever been and the stock market, the highest. Take advantage of them now and schedule a conversation to see how we can help you.

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