Saturday, April 09, 2011

Are Your Investments Liquid? Safe? Free of Government Control?

"I am confident that this country will default on its debt," Bill Gross wrote recently.


Bill Gross, if you do not know, manages the world's biggest bond fund. As the founder and chief investment officer of PIMCO, he's responsible for over $1.2 trillion in assets – mostly in bonds. And last month, in his main bond fund, he got rid of all of his U.S. government bonds.

"[I've] been selling Treasurys because they have little value within the context of a $75 trillion total debt burden," Bill said. "Unless entitlements [namely Social Security, Medicare, and Medicaid] are substantially reformed, I am confident that this country will default on its debt."

How would that happen? "Not in conventional ways," he explained, "but by picking the pockets of savers." He says the government will pick your pocket through "inflation, currency devaluation, and low to negative real interest rates." So, what does that mean for you and me? If bonds are no longer a good place to invest, are there any safe investments?

So what to do with your money, you ask? Well, my first questions to you are where is your money invested currently? Is it accessible/liquid? Are there penalties for you to access it? If you answer yes to any of those questions, you probably are invested in a qualified plan! Qualified plans are under Government control and subject to taxation at the will of the government...

There is really no good reason to invest your hard earned money into the Government Impound! That is my name for the qualified plans set up through Government legislation! You can put your pre tax money in and save a few dollars on what we will call the seed money, only to sit back and wait until you are old enough to access the money without penalty and then pay the tax you deferred years before, not on the seed amount, but on the full amount. And by the way, that tax rate has not been set yet!

So, at the time that you decide to access your funds, and if the scenario that Bill Gross suggests comes to pass, do you think the tax rate will be a modest number? Hardly! And, all the while, you have not had access to your funds without a ten percent penalty for a withdrawal. So, another question... why are you doing that to yourself? Why are you willing to give the government more of your hard earned money?

My recommendation is to get your funds into something that is liquid, has tax deferred growth, tax free withdrawals, no fees, guaranteed growth, creditor and judgment proof and NO Government control! On our Tuesday evening Online presentations, we offer you an alternative to conventional banking/investing. Give us an hour of your time and we will show you a tried and tested system that has been used successfully by many over the years to build wealth and financial independence.

Want to stop wondering if Social Security will still be there when you retire or if there will be enough left in your retirement account (after taxes are deducted) to support you in retirement? Do you want to maintain your lifestyle in retirement? Let us address those issues for you and much more...

Take a hour on Tuesday evening and register for our Online Seminar. You will learn how banking really works and why you want to have your own privatized banking system. Register by clicking on the "Night of Clarity" icon.

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