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Missed Fortune – What to do With the 401(k)

Posted on | November 24, 2009

With so many people changing jobs or facing unemployment during this economic upheaval, many Americans are faced with the question: What to do with the 401(k)?

investmentoptions 300x249 Missed Fortune   What to do With the 401(k)In a recent article by The Associated Press on this topic, the advice was expectedly traditional:

  1. Leave the money in the account with the former employer (you can’t make further contributions, but your 401(k) will continue to go up or down with the market).
  2. Roll it over into your new employer’s plan.
  3. Roll the money over into an IRA.
  4. Cash out the account and suffer the early withdrawal penalty and a mandatory 20 percent withheld in taxes (you’ll still owe more in taxes if you’re in a tax bracket above 20 percent, which most Americans are).

There is a better option: Implement a strategic roll-out (not rollover) of the money in your 401(k) and leverage True Wealth Asset Optimization tactics to put your money to work for you in maximum-funded, tax-advantaged insurance contracts.

With this strategy, it is possible to create new tax deductions that can offset some or all of the tax liability incurred during the roll-out process.

But even if you do incur some tax liability, it is advantageous to get the taxes over and done with now when you are likely in as low a tax bracket as you will ever be, and when your money is worth more than it will ever be.

These maximum-funded, tax-advantaged insurance contracts can do more for your serious money than 401(k)s, IRAs or even Roth accounts, because they allow you to withdraw money tax-free (even before age 59 ½, without penalty).

They also allow your money to accumulate tax-free, and when you pass away, your money transfers income-tax free to your heirs.

So if you’re contemplating the next step for what’s left of your 401(k), explore maximum-funded, tax-advantaged insurance contracts. It’s possible to protect your financial future so you never have to lose again.

Isn’t It Time You Became Wealthy?

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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