What an accurate thought by Mr. R. Nelson Nash, when he said IRA’s are contracts with the government. I heard this while I was at a think tank for Infinite Banking and sat back and thought well that is big TRUE statement!
We stick money into a 401k, IRA, Pension, etc and we carry all the risk but the rules are not made by us, they are made by the government. The government tells us:
-how much we can contribute
-when we can take it out
-what our penalty will be if we take it out early
-what our penalty will be when we wait to long to take it out
-should they want that money they have full access to it.
There is no way I would go into business with someone where they made all the rules I put up all the money and had no guarantees on my investment. No way in heck, yet this is what 50% of American’s who contribute to their retirement plans are doing on a daily basis.
On top of that, we finance everything we buy. We go to the bank and finance that car, house, camper, and boat when we could have just used our own money instead of paying someone else to use their money. What we pay out in interest far exceeds what we make as a rate of return in the retirement accounts.
As R. Nelson Nash says himself, “ just another IRS plan that is an exception to the problem the IRS caused in the first place – i.e, onerous taxation. When one participates in a government plan he is letting the government control his thinking. The net result of this course of action makes him into a slave of the state in due course of time. I encourage everyone to avoid such plans for this reason.”
Rethink your investment, aka contract with the government. In the meantime, I am going to keep my money under my control as much as possible.