Dear Prospective Client,

The article "Why It's Time To Retire the 401{k)" from the TIME magazine issue above was written by Stephen Gandel in October of 2009. Mr. Gandel is an award winning journalist who has covered banking and financial markets for more than two decades. The article examines the "birth" of 401k's and essentially how they came about as an executive "perk", but were never intended to replace the employer pensions one would receive from their job.  They are referred to as "lousy" and  a "rotten repository for retirement reserves" as Gandel urges all to reconsider the 401(k) as the primary tool for retirement savings, suggesting it should be a third tier, behind pensions and Social Security.  Pensions? Who has a pension anymore? The article highlighted the vulnerability of 401(k)s, particularly during market downturns, and questioned whether they were truly sufficient for secure retirement. It also pointed out that many workers lack access to 401(k)s, highlighting the inequitable distribution of retirement savings benefits.  Gandel closes the article proposing "retirement insurance"as a way to address the risks associated with market fluctuations and ensure a more secure retirement income. 

Now I'm going to keep this short and sweet. Pensions are gone, unless you live in Chicago and are a Union Worker, Cop, or Fireman -and that's that. 401k's, if offered by your employer should be funded to the employer's match, and maybe perhaps 2-3% more, nothing more. Why you ask? Risk and fees!!

-401k's are directly invested in the stock market. Your hard earned money is at risk every minute of every day. In 2008, 401k's were down almost 40%.

-The average 401k loses about 1/3 of its value to provider fees. 

-Whether you're up or down in your 401k account, your provider is ripping fees you can see and many that you can't.

-Your 401k is tax deferred. Fathom what tax rates will be when you need your money the most -when you're older and trying to retire.

Not ever, I mean NEVER in any way to sound like Jen Psaki, however let's "circle back" to what Gandel suggested 16yrs ago. What was the term again Retirement Insurance? BINGO. 

Enter Indexed Universal Life Insurance, IUL for short.  Below are actual returns of a 401k "invested in the S&P 500", and an IUL that is "indexed to the S&P500.  Invested vs. Indexed.  What a difference a few words can make as you'll see below:

📉 S&P 500 Performance: 2000–2010 

Tell me what you'd rather have your money doing for you? Risking it away in a 401k, or putting it to work for you in an IUL? Look at those returns. Look at those negative returns. Look at those zeros. Zero is your hero! You didn't lose a dime. I'd rather take a zero than -38% in a given year, wouldn't you?! So let's recap: Pensions are out, hopefully social security it still intact when you need it, 401k's are fee riddled, have no tax advantages, and are frankly dangerous in terms of losing capital. What's left is clear, Indexed Universal Life. IUL's today are now indexed with Blackrock, Morgan Stanley, Barclays, and Fidelity as well as the S&P500. They provide hefty returns, protecting your capital, while providing excellent cash life benefits (chronic, critical, terminal) and of course  death benefit to pass along to your heirs tax free. Honestly, what more could one ask for?

Thank you for taking the time to read and take this all in. I have one more request, watch this awesome, 2016 Award Winning IUL 3.5 minute video, then call me directly at 239-699-1543 or 281-766-7684 to review your personalized illustration as I will then assist you with you IUL application.

Best regards,

Michael

Michael R. Hrad

Principal, Broker

AGH Financial Group