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John Nicholson is the founder of www.The 401K Man.com, an independent insurance & financial services agency dedicated to helping others find their solutions through the myriad of choices when seeking insurance, retirement and financial advice. John's career path began with helping others in the late 1980's and early 1990's. The 401K Man is an independent agency servicing the Midwest which provides a wide variety of choices as opposed to one size fits all plan available at many of the larger financial or "brand" insurance companies & firms. We offer many solutions from basic insurance policies to comprehensive estate planning.

Saturday, February 15, 2014

One of the most difficult things today to do is wealth building for retirement through a safe easy program .Some people prefer real estate others swear it is only safe in a bank while others follow what sounds good at the time. Sadly that is mostly attributed to what we hear about people killing it in the stock market. The saddest part is this is the farthest from the truth in most cases. 
There are only a few truly safe ways to maximize wealth building. Compounding of your money while keeping it tax free, and the other very important consideration is your interest rate. Everyone thinks about earning it but isn't keeping it just as important? 
Few people think of insurance as a safe investment  but insurance has the ability to grow value through certain types of policies that allow you the same upward gains available as the market goes up. While you wont have the same rate of returns as the markets you wont have any losses either. If that catches your attention it should. To many people do not know enough about whole life and universal cash value insurance much less a sound financial plan.   
These programs have been approved completely by the I.R.S. for decades. If you had an opportunity to do this in a tax free environment and grow your retirement nest egg would it be worth while? We have programs available that can maximize all of these ideas. We feel along with Albert Einstein that one of greatest wonders of the world is compounding. In our case the power of money compounding while tax free. While not for everyone, depending on your age and tolerance risk if you took just half of your 401K or retirement your retirement could be twice as safe..
If you are not familiar with this topic it has been a Wall St secret for quite some time. Quite often times offered only to executives, certain professionals such as attorneys, doctors, dentists and upper level management from large corporations. Now it is available to almost all, with some restrictions.
Are you more interested in a healthy return on your investments or safety for your investment portfolio? 
Investment planners have a tough time explaining to individuals that what they may have heard for so long (Growth) is sometimes not in their best interest long term.
The idea that you must continue to take a high risk to realize a high rate of return is not necessarily the best move as you near your retirement (Safety). 
Investment objectives and planning are dependent on where you are in life and your asset levels and safety of those assets are critically important as you are nearing retirement.
For decades the typical planning mantra given was to buy and hold. Buy and hold really only matters on what you buy though. 
Holding the right stock with returns inching upwards over time and a dividend paying blue chip stock is the best return on investments for some investors particularly those nearing retirement.
In today's economic world what may be true for some individuals nearing retirement is not for others who have just entered the investment world. Splitting your 401K or retirement may sound preposterous at first but when you think about the risk of losing your 401Ks value versus the guarantee of no losses through an insurance policy it becomes a little clearer. 
Taking the first steps requires a careful analysis of where you would like to be in the future along with your current strategy and retirement goals.
If you like what you see here, then there is so much more to say, why not call The401Kman?  We can offer many solutions and can also help you weigh in on the best course of action.