Why do so many people try to reinvent the wheel when setting up their investments? Everyone wants to try out some new scheme or idea they learned about on the Internet that will increase the values of their 401k and their IRA or Roth IRA. Or instead we take the polar opposite and uninformed approach in our 401k retirement account and blindly equally divide our max contributions amongst all of the choices in the 401k plan, according to Ibbotson Associates.
For the inexperienced baby boomer, gen x or millennial, managing your money for retirement is daunting. Primarily we are afraid of making a mistake and losing more money than if we did nothing at all. When we attempt to gain information and get help or advice; there is too much noise and promotion to discern amongst all of the hype. How does one really know the best investment or best advice? A best “first step,” is to seek out local advice and help on how to invest ones money. A savvy simple solution is to follow how the highly educated and wealthy have chosen to invest their own money. So before you set out to invest your 2016 maximum 401k-contribution limit into a mix of mutual funds, keep reading to learn how the wealthiest and most intelligent people in America protected and grew their riches.
Imitation is the sincerest form of flattery
You’ve probably heard of Andrew Carnegie and his building of Carnegie Hall in NYC. It was during Carnegie’s lifetime that he became on of the wealthiest people on the entire planet. When he died, nearly 100 years ago, he had an estimated net worth that would be valued today at $309 Billion dollars. That is frekin’ amazing. Considering that Bill Gates is worth approximately, $79 Billion, Warren Buffett worth $67 Billion and Mark Zuckerberg worth somewhere around $45 Billion. Then add up all three of these billionaires net worth and you’re still a little more than half of Carnegie’s net worth!
Proof of Andrew Carnegie’s philanthropy and his remarkable love for education and knowledge, he also established the US Library System that we still use today. One of the last of Carnegie’s remarkable deeds, Carnegie set up what became the primary retirement pension funding source for Teachers in America. It is called;
The Teacher’s Insurance and Annuity Association – College Retirement Equities Fund.
Also commonly known as TIAA-CREF, it has grown to nearly a trillion dollars. Still today, educators and administrators in the Texas Teachers Retirement System have access to the retirement planning resource established by Carnegie. He knew that teachers and educators needed an affordable way to secure guaranteed monthly income during their retirement years. Carnegie himself invested millions into contractually guaranteed lifetime income annuities. And he wanted that same level of protection and income for our US nations teachers. Thus, the lifetime annuity was created not only for Carnegie and the wealthiest of Americans, but for educators and teachers as well. Carnegie’s TIAA-CREF has survived nearly 100 years, through the Great Depression of 1929 and the US financial crisis of 2008, Two World Wars and three more wars in Korea, Vietnam and Iraq. What Carnegie and the wealthy investors today totally understand best is;
Do not take unnecessary risk with your retirement plan and investments.
In addition to the wise Carnegie, one of the most celebrated and intelligent man who ever existed was Albert Einstein. Dr. Einstein was also an educator and he too secured his own personal retirement plan with annuities! What irony that the person who solved mysteries of our universe opted for the simplest solution for his own retirement plan and investments.
And more recently, Ben Bernanke the former Federal Reserve chairman, also built his retirement foundation on the rock solid security of index annuities; with his two largest personal retirement assets held in annuities! And Ben Stein the famous actor who is also a highly intelligent individual entrusts his wealth and the welfare of his family to lifetime income annuities. He writes;
In the simplest terms, it’s buying insurance against indigence in old age for you and the spouse you love. I have them. I love them. They’re the difference between terror and relative calm.
And he continues his praise of annuities with…
Look into it [annuities]. I don’t work for any company that sells them, so go to anyone you like. But look into them, and do it soon.
Times are not getting better but worse for the US economy. Worldwide chaos and violence on American soil in San Bernardino, CA; with ISIS and ISIL terrorist attacks and mass shootings creating havoc in the US stock market today. The stock markets news today is riddled with tales of another car bomb or threat to world order. Having the security of a contractually guaranteed 6% annual rate of return for your retirement income account just might make sense for a portion of your best investments. Learn how to earn up to 13% per year when the US Stock market rises and how to lock in those gains each year and never lose money or go backwards. This strategy is called “indexing” and has beaten the price gains of both the S&P 500 index and the Dow Jones Industrials Index today and since 1926 and since Y2k!
Transfer the risk of losing money due to a drop in the Dow Jones today or any stock market to an institution that has the means and experience to handle it. We as individuals in general, do not and cannot handle chaotic stock market ups and downs. If the wealthiest and the brightest people in America today and in our history made the wise decision to invest their own money into a mix of annuities, why aren’t you at least investigating how this might benefit your 401k, IRA or Roth IRA as well? Michael Ham and My Money Track specialize in providing you with the knowledge and unbiased information in the same sort of commission free annuities the savvy and smart investors have in their financial plan. Even if you reside outside of our local Dallas and Ft. Worth service area, we are happy to assist you and your best financial advisor. And if you do not currently work with a professional financial planner, or would simply like a “second-opinion” on your annuity portfolio, we welcome your call or email.
So before you plan to max out your 401k in 2016 up to the contribution limits, check out how these modern, low-cost and risk free, best annuity ideas could work for you. Escape the hype of Wall street and their fat cats. You really don’t need a hot hedge fund to secure the best retirement. Follow and imitate the rich and learn how the smart successful savers secure their lifetime retirement income. Change your life and gain financial freedom!