Americans are, in ever increasing numbers, beginning to understand many of the expectations they’ve been led to believe about their employer retirement plan are nothin’ but 401k fantasies.
Transcript: Hi this is Jeff Brown the “BawldGuy”. Today we’re going to talk about your 401K at work, and what a fantasy it is. It’s not your retirement income. It’s designed to increase. You know whose it is. Look, here’s the evidence. There’s a corporation that’s called DALBAR. Every year, they do a 20-year review of the average yield gotten by tax payers with their employers 401K. You know what it was the last 20 years? Around 3.5% a year. Yeah, you’re going to brag about that, right? An EIUL, on the other hand, all that is is an insurance policy, it stands for equity index universal life. The income it produces in retirement is tax-free by definition. Your 401K income isn’t. An EIUL can be taken at any age. A 401K, you’ve got to wait until you’re 59-1/2. Now look, you can borrow from an EIUL. It has cash value after a certain number of years, like any policy. Borrow from it. Don’t borrow from it. When you borrow, pay it back, don’t pay it back. It’s up to you. Your 401K? You can only borrow 50% of the value, up to $50,000 no matter how much you have, and you’ve got to pay it back in five years with interest, or they’ll be knocking on your door. EIULs can be employed seamlessly and synergistically with your real estate investment plan when it comes to retirement income. You don’t have to do things the way everybody tells you to do. Take what you’re putting into your 401K. Redirect it to an EIUL. Tax-free always beats after-tax when you have to pay the tax yourself. Why don’t you reverse what the plan’s really about, and make the plan about your income, and make that income tax-free whenever it’s on your menu to do so. This is Jeff Brown, the BawldGuy. I’ll catch you next time.