It caused quite a stir when the man who is credited with being the “father of the 401(k),” Ted Benna, recently announced that he’s put a substantial part of his own money – “probably the biggest part of my wealth” – into what is most commonly known as a Bank On Yourself plan.
You see, for at least six years now, Benna has been calling the 401(k) a “monster” that “should be blown up.”
Benna is credited with finding a way to capitalize on the tax code to create a way for working men and women to supplement the pension plans that many workers used to have. Those pensions plans have been disappearing, and 401(k)s were created to hopefully help pick up the slack.
But over the years, Benna watched Wall Street and Big Business pervert the 401(k) in ways he couldn’t possibly predict.
In a recent interview, Ted Benna discussed three reasons why we should be very leery of 401(k)s and IRAs:
- The government may repeal the 401(k) and IRA, so you won’t be able to put any more money pre-tax into these accounts, or the amount you can put in will be drastically reduced (Congress considered doing that again last year!)
- Benna believes the next stock and bond market crash is imminent and could wipe out 40% of the typical portfolio
- Wall Street has hijacked these plans, and the excessive fees charged by mutual fund companies and plan administrators are robbing you of up to half of your nest egg
I’ve Been Sounding the Alarm About 401(k)s and IRAs for Even Longer than Benna
And I’ve been attacked ruthlessly for that by the Wall Street fat cats who always get paid – whether we win or lose.
But the real story here is Benna’s admission that he has, in his words, “put most of my money” into the high cash value, dividend-paying whole life policies most commonly known as Bank On Yourself-type plans.
Benna says these plans avoid the dangers that traditional retirement plan accounts face. Another reason he likes this type of plan is because of its tax advantages.
If you’re interested in the back story of how Ted Benna came to reveal all of this in an interview, read my blog post about the “501(k) plan”.
I think you’ll also find this article, 6 Reasons Your 401(k) is a Scam, eye-opening.
Ignore the Warnings About the 401(k) at Your Own Peril
Wall Street has been extremely successful at getting us to buy into 401(k)s, IRAs and similar government-sponsored retirement accounts lock, stock and barrel. Most people have little or no savings outside of these vehicles, according to the Federal Reserve Survey of Consumer Finances.
But the chorus of experts warning of the dangers of 401(k)s and IRAs keeps growing.
Don’t put your head in the sand – find out TODAY how the Bank On Yourself concept can bring true lifetime financial security to you and your family. Just request your FREE Analysis here, if you haven’t already.
Do it right now, while you’re thinking about it. Don’t make the mistake of waiting until it’s too late.
You wrote: “It caused quite a stir when the man who is credited with being the “father of the 401(k),” Ted Benna, recently announced that he’s put a substantial part of his own money – “probably the biggest part of my wealth” – into what is most commonly known as a Bank On Yourself plan.”
Where does Ted Benna say he favors whole life insurance over 401k’s? I can’t find anything — interviews, articles, etc — that supports the title of this article. I found an interview in which he states that most people should take advantage of 401k’s.
Benna said this in a lengthy interview he did with the Palm Beach Research Group.