Call it taxes, fees, or bank charges, it all comes down to one thing.
At the end of the day the average American, will give half their life or more, to pay Wall Street, Banks and the Government.
From the time you start working until the day you retire, every financial planner in America will tell you to put money in a Government sponsored retirement account. An IRA, or 401k or other type of plan like this.
So for the next 40 years you save money in the Government sponsored retirement plans. During this time, your money is largely inaccessible.
The bottom left hand corner of the triangle is where nearly 90 percent of the savings resides for working Americans with 401k-type retirement accounts. This means, outside of these plans they only have 10 percent of their money freely accessible.
This illiquidity is how the banks become richer every single day.
About 401k Fees
When it comes to fees in retirement savings plans Congressional Representative George Miller of California says, “You may have losses on these plans, but you will certainly have fees.” Just recently laws were implemented to require the full disclosure of these fees, and an average couple’s estimated lifetime fees could be over $150,000. This could represent years of income for some people.
Now move to the top of the triangle, to the banks.
During life you may have a need to make a major purchase such as a car, or a home.
Because you were encouraged to save money in illiquid retirement plans through the lure of a deduction, you must now go to banks and pay them interest to use a stranger’s money. Quite possibly the money the bank loans you is your own money which is locked up in the Government sponsored IRA or 401k plan.
Because you have no access to your money in IRAs, and to a great extent other Government sponsored retirement plans, banks benefit through interest charged so you can finance the major purchases in life. Keep in mind, you might have a significant amount of money in a retirement plan, but you can’t use it.
Government Wins In The End
Today, many of those who are retired and have saved money in this system are making the Government richer over the taxes they are now forced to pay on distributions they don’t need.
Whatever resides in these plans after death, will then be dumped on the next generation who is completely unprepared to properly inherit this money. That generation will be boiled in the kettle by taxes on these retirement accounts. That too is all about education. This is an unfortunate loss of one’s lifetime legacy of human effort. It is a feast for the Government.
Think about the minutes, hours, days, months, and years of Financial Freedom that is being vaporized in this system.
The fees on 401ks, the interest charged by banks because you cannot use your own money, and the harvest of taxes on your savings all add up to lost Freedom.
Freedom that is being vaporized by a Government sponsored plan.
Of course the idea used to promote these plans was that taxes would be lower in retirement, right?
Now look at the bottom right corner of the triangle. That is the Government.
The Government has every person in America locking up money
for retirement in IRA and 401k plans, where the rate of tax is yet to be determined.
You are buying something where you have no idea what it will cost you.
And… it’s your money.
Roth IRA? Think Again
Some people think they have the answer with the “Roth” plan because it is tax-free.
Who do you think writes the rules for these plans? The Government does. Who decides when to change the rules? The Government. The rules change to meet the needs of the Government.
What are the Government’s needs today?
Do You Have Financial Security If …
The Government can change the rules to suit their needs?
You do not have choice nor the ability to invest your money into ideas that might create more Freedom for YOU?
You cannot get your money when you need it?
If the investments within the system cause worry or fear?
You can’t make your mortgage or car payment, and your own money is inaccessible to you?
 Demos.org, a research organization.