Emergency Preparedness – Money Storage in Retirement Plans

Emergency Preparedness – Money Storage in Retirement Plans

   Qualified retirement plans are as simple to understand as a chicken farm.  “Qualified” means that the IRS fox is kept away from layer hens and eggs during the working years because you commit to build this flock as a replacement for you for income earning when you retire from the workplace.   
   Now, think like a chicken farmer.  Do you want a big flock or a little flock in the henhouse when you retire?  Additionally, in retirement do you want to live on chicken or eggs?  See how simple?
   You can eat your chickens once.  You can live on the eggs forever and leave your unconsumed flock to someone else, if you learn what can be done and are careful in your choices.
   However, most all pension plans and annuities intend to keep your chickens and only pay you eggs until you die.  If forced to annualize, this is what will happen to you.  For each $l,000 (chickens) you give up, you will get $X (eggs) per month for life.  That X figure can be as much as $6 per month per thousand, or as little as $3 per thousand.  If it is $3, you will get $3 x 12 payments a year, or $36 income for each $1,000 left in the plan.  That’s only 3.6% annual return on each $l,000.  LOOKS LIKE EGGS TO ME, and few at that — and that’s chicken feed compared to simple interest bank rates where you still own your money.
   Retirees, be careful.  You can get help managing your money storage as well as your food storage.
   For more information contact several qualified retirement and annuity specialists and a good CPA.
SEE THE NEED AND THEN PROCEED, TO BE PREPARED.

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