Updated: Oct 15, 2020
One of the reasons why "traditional" planning is so prevalent, is the definition of success in our society.
The word "millionaire" is full of prestige, opportunity, control, travel, and especially SUCCESS!
It's a success MILESTONE in our society!
And depending on WHERE your money is... it's a complete farce!
If you have $1 million or more in your 401(k) or IRA... you don't have a million dollars, no matter WHAT your statement says.
The problem with saving money in IRS regulated plans... is you don't know how much of it belongs to YOU! We could calculate it based on if you withdrew it ALL out today... but because of future ongoing changes in the tax code, it's IMPOSSIBLE to determine your total tax liability. Also, it all depends on how much the Government feels they need from you and your success.
This is why if you're an IRA millionaire... you're a false millionaire - only because you cannot calculate how much of your plan belongs to you and your family! Don't get faked out by your statement!
What is the alternative?
Well, I cannot really think of a better word than 'millionaire'. Or maybe I can?
If I could help you have a financial strategy that:
You could spend your wealth without the fear of running out?
Maximize your returns without the risk of loss?
Pass on your wealth to the people and causes you care about, instead of nursing homes, financial institutions, Wall Street, or the Federal Government?
Design your plan to work in ALL circumstances - regardless of inflation, stock market performance, interest rates and tax changes rather than your plan ONLY working within specific circumstances?
It might not have as much money on the statement... but you'll have FAR greater control and IMMUNITY from all these external changes that can take a great hit on your financial viability in traditional planning.
Plus, learning how to leverage 'contract wealth' rather than 'statement wealth' has MANY tax advantages in the tax code!