Do Away With Your 401(K): Ground-Breaking New Book Exposes Why the 401(k) Plan is a Failure and Offers a Safe and Income Tax-Free Retirement Solution.
Using major media sources like Time Magazine and Bloomberg News to make a compelling case that the 401(k) model is broken, Attorney and Financial Planner Bill Kanter J.D., M.B.A, describes Index Universal Life (IUL) insurance, which offers tax-free retirement income with zero risk of market loss. In this book, Kanter outlines the model in full and shows why the traditional 401(k) plan has been a failure.
Chicago, IL – While the United States is slowly climbing out of the financial crisis, trillions of dollars have evaporated from millions of citizens’ 401(k) retirement accounts which have become the primary source of retirement funds for many. One Chicago based financial planner and lawyer is convinced that the 401(k) is broken at the roots. In his book, Bill Kanter presents an alternative solution that could save the retirement nest egg dollars, livelihood and retirement dreams of millions.
‘Do Away With Your 401(k)’ has a simple mission; to expose the pitfalls of the 401(k) and show Americans how to create a lifetime of TAX FREE growth and TAX FREE retirement income with ZERO RISK of market loss and significantly lower fees. Kanter is adamant that an alternative to the traditional retirement savings account is needed.
“The 401(k) is broken for several reasons. First, 401(k)'s are almost always in the market and, as we have seen twice in the past 13 years, are at huge risk of falling victim to major or even catastrophic market loss. This is especially devastating to someone in the years immediately preceding or during retirement when the account holder does not have time to let the market (hopefully) make up the losses. Second, because 401(k) withdrawals are taxed as ordinary income, they are subject to future tax rate increases. Given the enormous debt in this country, this may be significant. Finally, 401(k) fees, often hidden from the employee, can amount to over a third of the account’s value. This is preposterous!” he explains.
Continuing: “My book describes the solution, which is a unique type of permanent life insurance policy called Index Universal Life or IUL which is what I call ‘high cash value/low death benefit life insurance.’ This is life insurance where we lower the death benefit to the minimum required by the IRS so the policy can still be classified as life insurance which is tax free. With less of your premium going to purchase death benefit, more money is available to go into the tax free cash value.”
Not only is the cash value of IUL's tax-free, the account can earn up to 14% (depending on the insurance carrier) when the market goes up. Equally important is the fact that it cannot lose any money in the market when the market goes down (this is called a "0% Floor/14% Cap"). When structured properly, withdrawals are also tax-free and over time, fees are drastically lower than those in a 401(k) plan.
“The IUL, when structured properly is entirely tax-free, both the growth and the withdrawals. It is entirely safe from market loss, and has the potential for double-digit gains when the market goes up. It also provides a tax-free life insurance death benefit,” Kanter adds.
The author’s book shares many other benefits that an IUL policy affords such as the ability to use the death benefit while alive for long term care health needs (depending on the carrier). The end result is tax free growth, lower fees and ultimately a more financially stable and tax free retirement income.
“This book is going to enlighten a huge number of people. The 401(k) was never supposed to be a retirement plan for the masses. Wall Street was able to get all of that money into their mutual funds with all of those fees. It's time for the solution which is Index Universal Life insurance,” he concludes.