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Getting The Most From Your 401(K)

We’re getting dangerously close to the end of 2019, but there’s still time to add to your 401(k) if you haven’t maxed out your contributions this year. 

Just to remind you, if you’re under 50, you can save up to $19,000 per year ($25,000 if you’re over 50).  For a lot of the people I talk to, they aren’t anywhere close to that number annually.

Let’s look at that, from a realistic standpoint. 

First of all, the 401(k) program was never intended to be someone’s ONLY retirement account.  It actually was seen as a “bonus” of sorts for pensioners in the 1970’s – giving them the chance to withdraw additional monies for things like vacations, new cars, etc. 

Not the entire retirement asset. 

Not the whole nest egg. 

So, if you work for 40 years and max out your contributions, about the best you can do – assuming there aren’t any catastrophic market corrections (which average roughly once every 20 years, by the way), you get about $800,000. 

(I realize this isn’t an exact number, but remember, contribution limits change based on the year and your age) 

$800,000, plus whatever your home is worth.

Maybe a million bucks, give or take a recession or two.

It sounds like a lot, but when you consider you still have to pay taxes on those monies when you begin to use them, you HAVE to realize that you have to do more for your retirement savings. 

How can you do this?  Well, not surprisingly, you cannot “save” your way to wealth, so put that out of your mind right now. 

You’ll have to take an active role in creating “new” money and investing it in ways you (probably) aren’t doing right now. 

Real estate, overfunded whole life insurance policies, and a variety of other strategies can give you an advantage over “just” a 401(k) and a “park and Pray” investment strategy. 

So here’s the deal – between now and the 31st of this month, I need you to dump as much as you can into your 401(k) AND I’d like to invite you to schedule a time to sit down and discuss with me what your long-term goals are.  As you know, I have a Rolodex filled with experts in estate planning, real estate investment, insurance investing, and many others.

…And I’m willing to open that up for you, but you have to be the one to take action – I can’t make you sit down with me!

Let’s get you on track to retire wealthy and begin 2020 with a great financial gameplan in action.

Happy Holidays!