If you are like the majority of people out there you have been sold on 401k’s and to aid in that sale they give you a match. You hear “This is free money.” and who doesn’t want free money? I would love it if it were true.


Look at the math and you can decide for yourself.

In this math I am going to assume:

– You are 40 years old
– You  are making a 4% ROR
– You NEVER have a downturn in the market
– You are getting a FULL match

As you can see below, you have a total of $259,870.00 to retire on.

BUT you have to pay tax when you withdraw that money.

Taxes at 30%:

$259,870 x .30 = $77,961.00   That is 60% of your match going to taxes!

WHAT IF taxes were at 40%?

$259,870 x .40 = $103,948   That is 80% of your match going to taxes!

The moral of the story here is the match is NOT getting you rich. It is paying for the majority of your taxes.

WHAT IF your employer only matched half of what you are putting in? The match may NOT even cover taxes. Now you are using some of your money for taxes.

The solution is to put your money in a tool that allows for guaranteed growth and a system that allows you to use it tax-free during retirement. If you had that tool, you would have all of your contribution guaranteed and you would be paying NO tax on that when you use it.

Don’t be fooled by this 401K and IRA agenda society has set us up for. You put your money at risk and then pay tax on that money when you want to use it.

Doesn’t the media say secure your future? There is only one way to do that and it’s dividend-paying whole life. You know stocks are not secure, not even close to secure.

Please call with questions or concerns. I love to hear from you.

Mary Jo