Who is your financial role model?
Have you sought out a role model? You need to find a role model, who really understands the concept of money. We are not taught about money. There is no such thing as money 101 in schools. It’s incredible that we’re not taught how to use money. We are not taught so many basics about money.
Without the investment principles of the wealthy, you will spend all your retirement savings and never leave a legacy for your family. Stop investing like your neighbors. It’s about the net return you keep, not about the gross return you earn. Retirement income is expensive to withdraw. When taking money from a retirement plan or an IRA, to receive a dollar you must cash out $1.65 if you’re in a 40% tax bracket. You have to cash out $1.50 if you’re in the 33% tax bracket. It’s just amazing what it costs you!
When you go to a conventional retirement specialist, as they call themselves. . . somebody from the banks or from the Merrill Lynchs or the Morgan Stanleys, their aim is to get you into one of these plans. And once you’re in one of these plans, you can’t touch the money. That money is just sucked away. And if you want to borrow any of this money back you have to pay a tax plus a penalty. It’s just terrible.
If you do your own self-directed retirement plan, you’re in control. You can put in as much money you want. If you have a really good year you can put in as much as you want to put in. If you have a bad year, you don’t have to put in any money. If you have an emergency, the money is there for you. The ideal situation is for people to take responsibility.
Tags: conventional retirement plan, self-directed retirement plan
