The Barefoot Retirement Plan – How It Works – The Most Powerful Retirement Plan In America

Wed, Feb 17, 2016

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The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America

The Barefoot Retirement Plan – How It Works – The Most Powerful Retirement Plan In America

http://barefootretirement.com/how-it-works/

The Barefoot Retirement Plan utilizes section 72(e), and 7702 of the IRS code. The accumulation of cash inside the Guaranteed Index Account (GIA) is tax advantaged. Not only can the cash value accumulate tax-free, but the cash can also be accessed tax-free, and even passed on to your heirs, tax-free.

Hence, the beauty and magic of the GIA is that it’s a unique vehicle that allows tax-free account value accumulation, allows you to access your money tax- free, and, when you die, blossoms in value and transfers income tax-free!

The GIA is unique in that it offers both safety and opportunity. The safety comes from internal guarantees against market losses. The opportunity comes from account growth when the market grows, and gains that are locked in, each and every year.

At the end of the year, if the market has gone up 12%, your account is credited 12%. The account value is locked in, and will never decrease due to market losses. If the market goes up 18%, your account value grows up to the redefined cap (usually between 13%-17%, depending on the plan you choose). If the market goes down 20%, your account value does not decrease one cent due to market downturn.

The 0% floor gives you protection from any market loss. The GIA uses a small portion of your funds to purchase options on the S&P 500 index (and other indexes, depending on the plan you select). These options have a 0% floor, and typically a 17% cap on earnings. This means that the account value is completely protected from market decreases, but can still earn up to 17% per year, when the market grows. Let’s take a closer look and see exactly how this works.

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The average American’s retirement accounts are far from where they need to be, to provide the kind of retirement they desire. In fact, 61% of pre-retirees fear running out of money during retirement, more than they fear death itself. That’s shocking! According to an analysis by Dalbar, the average investor only earned 2.1% over the twenty year period ended Dec. 31, 2011. After including inflation, the average investor had a negative real return. So the average investors’ net real return was -0.4%. It’s no wonder people’s retirement accounts are looking anemic.

According to the Standard & Poor’s… Over 99% of Mutual Funds ConsistentlyUnderperform The S&P 500 Index. So, the S&P 500 Index is a pretty good place for your investments, right? Well, let’s take a closer look at it.

The Biggest Two Killers of Retirement Dreams Are:

1. Losing money

2. Taxes

The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America

As you can clearly see, since 2000, the “smart” people who were in the S&P 500 Index have lost about half of their account value TWICE. You have probably heard of Warren Buffett’s famous rules for investing. Rule #1, never lose money. Rule #2, never forget rule #1.

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  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
  • The Barefoot Retirement Plan   How It Works   The Most Powerful Retirement Plan In America
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