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Financial Freedom: The American Dream

In the 1700’s Samuel Johnson wrote, “The first years of man must make provision for the last.” Today his words ring loud and clear.

TIPRA – Tax Increase Prevention Reconciliation Act – 800+ pages signed into law in 2006 to become effective in 2010 can save your IRA & 401K from runaway taxation that is on the horizon. In a nut shell you can make ROTH IRA Conversions in January 2010 and spread the income-tax over 3-years while earning tax-free interest and developing tax-free income for life, but it doesn’t end there. With proper beneficiary designations your family heirs can also enjoy tax-free income and you can get all the information in the IRA Wealth Management Guide from an ANBC IRA Advisor.

Financial freedom – Money Management begins with managing tax dollars and every penny counts. How many pennies are in a Million bucks? It takes 100,000,000 pennies to equal a Million Bucks. Come up a penny short and you don’t have a Million bucks.

A Smart Money Trivia Question. How many pennies must you earn to have 100,000,000 pennies after tax? The answer is about 167,000,000 pennies. We pay Federal and State Income Tax, Social Security Tax, and Medicare Tax- and soon it tallies up to 200,000,000 pennies to have 100,000,000 pennies after tax and it doesn’t stop there. We pay sales tax, real estate tax, and the list goes on to include estate tax on our remainder.

Who owns your home? You or the government? If you own your home when do you get the taxman paid off? Some people in retirement are now paying more in real estate tax than they paid in mortgage payments.

The Express Way to Wealth. Truly, the express way to wealth accumulation was qualified retirement plans, IRA’s, 401Ks, and 403(b)s where captured tax dollars were compounding and growing income tax-deferred and some people accumulated a $Million Bucks, pure and simple, 50% of the $Million was tax dollars and growth on the tax dollars.

That was the case until the economy went bust! So many lost their jobs and some families lost two jobs, lost their home and 50% of their hard earned qualified retirement plans and now our individual I.O.U.S.A. tallies up to $37,118 now multiply that times the number of family members. A family of 4 now owes the U.S.A. 148,472.

The government is spending money like there is no tomorrow. Tax rates are going through the roof. The New York national deficit time clock chimes no more… it bust when it ran out of numerical digits.

The national deficit as of June 15, 2009 was $11,384,852,540.52 and it’s growing $Billions per day. Tax rates are going through the roof.

Dollar Cost Averaging averaged great cost. The Market Crash of 2000 and 2001 left many people holding empty moneybags. Dollar cost averaging over the past 10-years has turned into Dollar Loss Averaging. In 2008 our 401Ks just recovered market losses from the years 2000 and 2001 the market tanked again robbing us of 40 to 50% of our hard earned retirement plans. It is sad, but true, many families have lost both jobs, their home is in foreclosure and their $250,000 401K now worth only $150,000 and the family of four owes the U.S.A $148,472. What can we do now?

The long road to recovery. Recognize salvage value and focus on recovery. It is time to plan the implementation of TIPRA408A and plan for retirement income for life that is income-tax free. With TIPRA408A you can elect ROTH IRA Conversions, spread the tax over 3-years with a Premium Bonus Annuity with a Life Time Income Benefit Rider that can increase your income values by 18 to 20% in the 1st year and more than double the tax-free income amount in 8-years. A word of caution all annuities are not created equally. It’s time to give up on make believe gains, especially if you are age 55 plus.

My gambling success formula: Gamble with no more today than you can afford to lose today, at the Race Track, in the Casino, and on Wall Street Gamble with no more today than you can afford to lose today.

Senior Money News and Views.com is the place to get more information on my next seminar (public educational program) featuring ways to protect your retirement income, safeguard your IRA and to preserve more for your heirs. And of special interest to everyone the TIRPA 408A law that permits everyone, no holds barred, to spread taxes on a ROTH IRA Conversion while developing a stream of tax-free-income for you and your family. It’s something you need to know now.

The Golden Years of Retirement now require more Gold. To survive this busted economy we must stop losing money to the IRS and Wall Street.

A Financial Tip for Seniors. Seniors are holding $19 Billion in expired U.S. Government Bonds. Why would people hold U.S. Government Bonds earning Zero-Nada-Zilch? Very simple, because they were purchased years ago and the government never sends annual reports or statements, and when the bonds mature and expire the government notifies no one = not even the heirs.