All The Dogs Barking Up The Wrong Tree Doesn’t Make It The Right One!
by Saul M. Simon,
CFP, CFS, RFC
Socking money away into IRA's and 401(k)'s and paying extra principal on your mortgage is counter-productive.
In the quest for financial independence, there are two places most Americans accumulate the most money: our home and our retirement plan. Following accepted wisdom, we set aside money in qualified retirement accounts such as IRA's and 401(k)'s, enjoying tax deductible funding and/or tax-deferred accumulation. At the same time, we assume it's best to achieve the goal of outright home ownership and save money on mortgage interest expense by sending extra principal payments against our mortgages.
Unaware, like naïve, inexperienced drivers, we proceed down the highway of life, pursuing financial security with one foot on the brake pedal and the other foot on the gas pedal! We may eventually make it to our destination, but only after a pretty jerky ride. We suddenly realize that during all of those years of earning money, we socked a portion away in investment vehicles that give us a tax deduction on the front end, just to be hammered with taxes on the back end! At the same time, we were killing our partner, Uncle Sam, by eliminating one of the best tax deductions we have as Americans - our home mortgage interest.
During our 'golden years' of retirement, we painfully come to the realization that we increased our tax liability by postponing it to a time when we no longer had significant deductions. In frustration, we complain, "But I did everything right! Everyone concerned about their retirement puts money into IRA's and 401(k)'s, and I've always been taught that you should pay off your mortgage company!" There is a valuable lesson I have learned in life - all dogs barking up the wrong tree doesn't make it the right one!
An education seminar is being conducted by Simon Financial Group featuring Saul Simon, and highlighting a new book, Missed Fortune, just published by Time-Warner. This seminar teaches concepts and gives insights that are contrary to popular belief. The strategies revealed will rattle conventional thought. You will gain insight into financial opportunities that you probably didn't even know existed. You will never view your house, mortgage, retirement plans, investments and insurance the same way again. For example, you will learn a strategy to take $25,000 from your retirement plan tax-free at age 59 1/2!
The insight you will gain by attending this seminar will either force you to implement new strategies or will leave you forever wondering how much more you could have accomplished had you done so. There are two ways to handle new information: Ignore it as false, or increase your level of understanding to accommodate the new idea. Feeling open- minded? Dispel the money myth-conceptions. Isn't it time you became wealthy?
This dynamic seminar will be held on Wednesday, December 8, 2004 from 7:00 to 10:00 PM at the Somerset Marriott, located on Davidson Ave. in Somerset NJ. There is easy access from I-287, exit 6 with plenty of lighted parking.
This educational seminar is taught nationally at a normal tuition of $100. However, subscribers to Career Tips are cordially invited to attend this presentation at no charge, compliments of our sponsor, Simon Financial Group, For guaranteed seating, please RSVP at 732-743-4270.