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401(k) plans were ‘never designed to be the retirement plan for America’

The title of this article is taken directly from an article on yahoo Finance.  Here at Henderson and Floyd we have been preaching this very thing for more than a decade, please notice earlier articles here, here and here.  One the point of 401(k)s being a retirement plan we agree, but much of the rest of the article I would like to take a moment to digest it moment.  Thinking is a difficult activity, so I will try to make this as short and painless as possible.

One of the first admissions in the article is given the title is a correct statement one would “run into tremendous resistance politically” if you tried to change it.  Just ask yourself, WHY?  Could it be because of the powerful lobbying arm of Wall Street and big banks?  Why would it be difficult to change something if it is not good for the average Joe on main street USA?  Each of us an individuals need to do some thinking about our individual retirement plan.

The next glaring unspoken contention is that Social Security is a retirement plan and we as a nation need to shore it up and reform it.  Newsflash:  SOCIAL SECURITY WAS NEVER DESIGNED TO BE THE RETIREMENT PLAN FOR AMERICA.  Don’t take my word for it, look it up.  Let me help you a little by quoting President Roosevelt when he sign the Social Security bill:

“We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”–
President Roosevelt upon signing Social Security Act

I am a big proponent of self discipline and self determination.  You know the old saying “what is to be is up to me.”  If we are going to have a good retirement, we need to own it.  We need to take charge and find the best ways.  You should be looking for guarantees.  Any retirement plan needs to be yours.

Here is a secret – you will build more wealth by reducing wealth transfers in your personal economic model than by chasing high rates of return.  The principles taught in the Infinite Banking Concept are sound and easily understood.  This is not a catch all retirement plan for America either, but the concepts and mentality that come with the concept will lead us a long ways.

A few questions for you:

1) Are you 100% sure you are going to have a great retirement or do you have some doubt?

2) Do you think there will be another economic downturn like 2008?

3) What are you doing differently now that will prevent you from loosing money like 2008?

4) When will create the time to look into the Infinite Banking Concept?

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