Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Uncle Sams Snake Oild > NetSparsh - Viral Content you Love & Share

Uncle Sams Snake Oild

Uncle Sam and his band of merry-men, better known as Congress, have been pushing snake oil on the unsuspecting public in the form of retirement plans. But wait, isn't a pension plan one of the perks we look to when shopping for an employer? Well, not all pension planning is created equal and in most cases, quite disastrous.

Distributions from all qualified plans must begin no later than April 1st of the calendar year following the year that the participant attains age 70 1/2, or the calendar year in which the employee retires. Special rules apply if the distribution is made to a 5 percent owner of the business. The purpose of minimum distribution rules for retirement plans is to force the owner or participant of the pension plan to withdraw money from the plans, thus triggering an income tax on these monies. On April 16, 2002, the Internal Revenue Service issued final regulations as to these distributions.

Generally, the idea pursuant to the regulations is to have the owner or participant of the pension plan begin taking the money out of the pension plan beginning at the later of when he finishes working or age 70.5. One purpose of this is to insure that these monies will be subject to income tax prior to the death of the owner.

Based on the current system the government has created with pension plans, the average retired couple will pay eight to twelve times more in taxes on their IRAs and 401(k)s during their retirement years than they saved during their contribution and accumulation years. Generally, it is understood that you put money into your pension plan and tax is deferred and this is a great thing. Unfortunately, you may well be in a higher tax bracket if your pension accumulation is done right.

In addition to a higher tax bracket upon reaching retirement, many people find themselves with a free and clear home; they no longer have mortgage interest deductions to offset income tax. Many Americans find they are now paying back everything they saved in taxes during their accumulation and contributions years within the first two years of distributions. Therefore, there is an insidious income tax awaiting most people and if they didn't plan their estates, double taxation in the form of both income and estate tax.

Many postpone the transfer of their qualified funds until age 59 ½ in order to avoid the 10% tax penalty. Sometimes by delaying the payment of taxes, retirees will find themselves in a higher tax bracket after age 59 ½ because Congress could raise tax rates because of a political change. Inevitably, one must pay the piper now or later.

What is the answer? Simple, investment grade life insurance. This type of life insurance is not the same as the one you get countless letters about in the mail. This is life insurance that is focused on building up a triple compound because it is tax deferred. The difference between the deferral that life insurance experiences and pension plans is that when it comes time for payout, life insurance is received as a loan. This is a powerful concept because the proceeds will not be taxed; loans are not a form of taxable income. However, as a loan you will have interest on the payments. Most people mistakenly think they are going to pay interest on their own money with life insurance. While in theory that is true, the best insurance carriers provide for zero wash loans where the interest basically is forgiven or taken out of the death benefit when a person passes on. We are talking about real life insurance not the typical death insurance that most people have because you use it while you're alive.

The best candidates for creating amazing wealth with investment grade life insurance are those in the age rages of thirty to fifty. Once committed and in the proper product it is foreseeable they will retire wealthy and without the annoying taxation that surrounds a pension plan. There are even strategies to start a contribution plan to your investment that only requires repositioning your current finances. To see a presentation on ways to finance your retirement go to

If you are over fifty, I'm sorry we missed you. If you have children don't let another day go by without them starting a plan because 79 million people are heading for the social security hand out in the next few years. Despite Social Security getting a 2.7 percent boost next year (2005), Medicare will eat up much of the increase and when the 79 million qualifying Americans sign-up ? look out below.

James Burns, Esq.

Law Office of James Burns

18662 MacArthur Blvd., 2nd Floor

Irvine, CA. 92656

(949) 440-3243

James Burns is an attorney with 2 law degrees one in tax and has trademarked financial concepts to assist individuals in creating wealth, protecting it and eventually transferring it to loved ones.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

Zing! Blog by Quicken Loans (blog)

7 Financial Mistakes to Avoid When Building Wealth
Zing! Blog by Quicken Loans (blog)
Financial success stories can be incredibly motivating. When we read an article or hear an interview about someone who went from zero to millionaire hero, it instills a sense of hope for achieving our own personal finance goals. After interviewing ...

Business Insider

I spent 5 years studying millionaires — these are the 4 steps to achieving financial success
Business Insider
... that can come to the rescue when economic downturns or other things outside of our control negatively impact one or more sources of income. Plus, you can invest the extra money, which leads to increased compound growth of your investments. There ...

and more »


Building competency in the wealth management offering
Anshu Kapoor, Head, Private Wealth Management, Edelweiss, shares the secret formula behind the firm's success with talent and clients alike. Talent can be a significant constraint in a service industry especially if it involves deep relationship ...

and more »

Money Morning

The Quickest Way to Start Building Your Wealth Immediately
Money Morning
The tech sector's returns were 62.2% greater than simply investing in an index fund. And the index fund's returns were not too shabby, either. And so far in 2018, despite big volatility and fears about a trade war and interest rate hikes, Silicon ...

Amsterdam News

Free real estate and wealth-building forum at the Sheraton
Amsterdam News
Saturday, March 24, the African-American International Chamber of Commerce and the New American Chamber of Commerce will be hosting their Business, Real Estate & Wealth Expo at the Sheraton Brooklyn Hotel. The expo will start off with activist and ...

Investopedia (blog)

Using Good Debt to Build Wealth
Investopedia (blog)
You may have heard before that debt can ruin your life. Many financial experts will discuss the negative ramifications of debt at length, advising that you should avoid it at all costs. Debt can be bad, but it can also be a way for you to accelerate ...

Sovereign Wealth Fund Institute (press release) (blog)

ADIC Sells Interest in Shiba Park Building
Sovereign Wealth Fund Institute (press release) (blog)
A group of Japanese investors led by Kansai Electric Power (Kepco) and Tokyo Gas acquired the Shiba Park Building, also known as the Gunkan (or warship) building, for a reported 150 billion JPY (US$ 1.4 billion) from a consortium of investors ...

and more »

Black Voice News

Life Insurance—One Pathway to Building Generational Wealth
Black Voice News
Life insurance was created to cover the costs of funeral expenses, income, and other financial needs when a loved one passes away. A research study conducted by Life Insurance and Market Research Association: Consumer Trends in March of 2017 reflected ...


How to get women to feel comfortable about building wealth
The goal was to identify small changes that, if embraced by many, could make a big difference in the opportunity for women to feel confident and comfortable building and sustaining wealth. One problem, according to the advisers and industry leaders in ...

Seeking Alpha

The Wealth Machine That Rising Interest Rates Create And The Conflict With The National Debt
Seeking Alpha
Compound interest is the reason why people are urged to begin investing for retirement in their 20s and 30s because having an extra decade or two for interest earnings on interest earnings to work their magic creates a wealth building machine and far ...
The Wealth Machine That Rising Interest Rates Create And The Conflict With The National Debt (Part 2)Gold Seek

all 1 news articles »
Google News

Retirement ? Can You Afford It?

Every day you work is one day closer to your... Read More

The Predicament of the Newly Rich

They are the object of thinly disguised envy. They are... Read More

The Secrets of World Money Flows and A Simple Way to Understand Them

You can learn the secrets of world monetary flow if... Read More

Money Mastery

Money can be your servant or it can be your... Read More

The Mathematical Formula For Making Money

No matter what markets you serve; what products you sell;... Read More

The TRAP Behind Websites With INSTANT Searches for Unclaimed Money

There is no questioning that the amount of unclaimed money... Read More

Russ Whitney - Building Wealth Through Real Estate

When Building Wealth by Russ Whitney was released a few... Read More

Rich or Poor - Get the Knowledge

Most people work hard all their lives only to "retire"... Read More

Don?t Work for Your Money, Make it Work for You!

Well, the New Year is around the corner and so... Read More

How To Be the Ultimate American Consumer

Feel like a lemming lately? Ready to follow the crowd... Read More

Jobless? You Stand To Be Rich!

This is a true story about a homeless man from... Read More

How to Have MORE Fun With YOUR Tax Refund in 2005

I counsel a LOT of people about money. I see... Read More

Before There Was Wall Street, There Was Gold.. & when Wall Street is gone, there will still be Gold

Paper burns and large companies can go bankrupt, but if... Read More

WARNING: The Biggest Lie About Compound Interest

Have you wondered why financial experts only tell you certain... Read More

Clearing Blockages to Increase the Flow of Money into Your Life

Money is probably the most challenging thing for many people... Read More

Wealth Secrets: Saving Your Way to a Fortune

SCENE 1: Pharaoh has just woken up from a very... Read More

Ben Franklin Didnt Quite Get it Right

When Ben Franklin said "a penny saved is a penny... Read More

Learn To Budget

Do you like so many others feel, that even if... Read More

It Adds Up

Loose change that is, if you want a easy way... Read More

Top 10 Secrets of Getting Rich!

As many people have observed, "Success leaves clues." If you... Read More

Financial Intelligence - Compounding (The Ninth Wonder of the World)

Compounding: The Ninth Wonder of the WorldBy Nicola Cairncross Compounding... Read More

The Morphing of Thought and Cash

Here are some thoughts about the morphing of thought and... Read More

Online Retirement Opportunity: Freelance Copywriting

For most of us, the idea of retiring simply on... Read More

Why Get Rich When You Can Be Wealthy?

"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More

Why You Need To Buy and Sell Gold Coins (Part 4)

Top Investment PerformanceThroughout history, many coin collections have produced substantial... Read More