Website design By BotEap.comOf all the qualified retirement vehicles offered by the government, a Roth IRA is probably the most appealing to financial planners, as common sense is finally winning out over conventional wisdom. The fact that it is better to pay the tax on the seed than on the crop is now being accepted, especially with the trillions and trillions of new federal debt created recently.

Website design By BotEap.comPeople are now wrestling with the idea that all that debt will have to be paid off and the easiest and most convenient way the federal government has at their disposal is TAXES.

Website design By BotEap.comWhen you understand that you’ll pay a lot more taxes later, then you’re better off paying taxes now, and that’s how a Roth IRA works. You put money into a Roth IRA with after-tax money, which means the money you put there isn’t accepted on your income tax as a deduction, but the good part is that when you can spend it, you won’t have to pay taxes. about that money.

Website design By BotEap.comThere are a lot more details to go into with a Roth IRA and they have to do with restrictions and regulations, plus the fact that it’s qualified by the federal government should tell you something. Could it be that the feds have some purpose or plan with them? Could it be that they intend to control them? I’ll let you ponder that idea.

Website design By BotEap.comLeaving aside the fact mentioned in the previous paragraph, a Roth IRA does not allow you to access your money unless you wait 5 years and turn 59 ½ years old. There are also restrictions on how much you can contribute to your Roth IRA annually, plus your income will determine how much you can put into it as well. You also have to follow many rules about how to withdraw your money, otherwise you may have to pay taxes on the earnings you made in your IRA. One advantage a Roth IRA has over a traditional IRA and 401K is that you don’t have to take the Required Minimum Distribution (RMD) before the required beginning date (RBD).

Website design By BotEap.comMost people argue that all those restrictions, especially locking up your money until you’re 59 1/2, is a good thing because otherwise, being an irresponsible, undisciplined, weak, careless, thug individual, you’d waste all your money and then the government will have to take care of you. The fact is that without you having all those nice attributes, the government is doing everything it can to reduce all of your self-determination leaving you penniless with taxes, inflation, rules, and enforcement, so the government will eventually end up looking out for you and asking in unconditional bondage of return.

Website design By BotEap.comWe’ve reviewed some of the pros and cons of using qualified plans and found that a Roth IRA is a better option if you still choose to accept government control, restrictions and regulations. How about we review the characteristics of the Infinite Banking Concept as an alternative for you to build your financial future, to build your retirement nest?

Website design By BotEap.comFirst After all, the Infinite Banking Concept is based on a contract between two private parties, you, an individual, and the insurance company, a private entity.

Website design By BotEap.comSecond, you are the sole owner of the contract; the company is obligated to perform as long as you do your part. There are no restrictions on when and how much of your money you want to take, other than the fact that you have enough to take, so in this case it works like a normal bank account, the bank won’t pay a check. that you write for more money than you have in your account.

Website design By BotEap.comHowever, it is not a perfect world; there is a restriction on how much money you can put into it that could trigger tax collection by the IRS if you cross the MEC (Modified Endowment Contract) line, but there is an easy fix for that, you can start a new contract.

Website design By BotEap.comThird, you have control over this vehicle; You can choose to leave the money alone, earning reasonable interest plus a dividend. Using a mutual company will make you part owner of the company and the company will share the profits with you by way of dividends, and for over 100 years, mutual companies offering these contracts have paid dividends.

Website design By BotEap.comIf you choose to use your money (cash value) to finance your needs and pay what you were going to pay to financial institutions, then you can take advantage of and take advantage of the strategies that banks use and strengthen your IBC.

Website design By BotEap.comIRAs will usually make a profit by investing in the markets, so there will always be an element of risk that will ruin some of your dream. IBC grows with guaranteed interest and dividends plus your choice of any needs you want to finance and redirect payments to you, also any investment you want to get involved in, is up to you. Therefore, with Infinite Banking, the risk is not part, it is an option.

Website design By BotEap.comLast but not least, there is always the protection offered by the insurance component that will give you peace of mind in case something unexpected happens to you and at the end of the line your loved ones will benefit from a larger sum that you built on a tax. . free foundation.

Website design By BotEap.comThis latter benefit can be used for strategic retirement money management and estate tax planning.
Based on this elaboration, a government-rated vehicle cannot even come close to the concept of infinite banking.