After everything was stripped away, the employee was left with only $2,362,325 in his retirement account. Even worse: His supposed tax-deferral advantage shrank from $1,101,505 down to only $564,463. His employer’s “free money” match was cut from $261,337 to a mere $115,178. Instead of the 6% growth he believed in, after all fees and taxes, his actual return amounted to just 1.25% per year over 31 years. The Reality of Fees and Taxes He began to ask himself tough questions: “What if the market doesn’t earn 6% every year?” “What if my tax bracket goes up?” “What happens if I can’t access my money when my family needs it most?” The government, after all, rides piggyback on his account—while he shoulders all the fees, all the risk, and all the restrictions. The Better Way: Privatized Family Banking (Chapter 5) There is a proven solution: Infinite Banking, or what we call Privatized Family Banking (PFB). Instead of depending on government-sponsored plans riddled with fees and future tax liabilities, PFB uses a well-designed, high-grade, dividend- paying whole life insurance policy. These A+ Superior contracts have over 177 years of history paying dividends, creating liquidity, security, and tax-favored growth. Best of all… The employee was not feeling so enthusiastic at this point, and it gets even worse when we finish all the math.
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