Do you know the single biggest secret about retirement planning?

If you want to enjoy a financially secure retirement, you need to read this immediately because this secret and the TRUTH about retirement planning are inside this article.

The media and celebrity “financial experts” have told you and everyone else in the U.S. that investing in stocks and bonds, preferably through tax advantaged accounts such as 401(k)s, 403(b)s and IRAs is the only way to prepare for retirement.

This is good advice for people who want to take the risk of market bubbles and busts in exchange for the chance of enjoying large gains. If this describes you, you might want to stop reading here.

There is a second, almost unknown approach to retirement planning that will grow your money more slowly. But it will remove the risk of sudden, unexpected losses. If this is more to your taste, read on.

Get our free retirement planning ebook here for details.

What They Tell You About Retirement Planning

You cannot read or listen to our mass media without seeing or hearing advice about how and where to invest in the stock market. If you look for guidance about preparing for retirement, you will find almost unanimous advice to invest in the stock and bond markets and using various tax advantaged accounts to do so.

For a retirement plan, both the stock market and the available tax advantaged accounts have 3 major problems:

• The stock market is risky. Over a long time it will increase in value. But you can never know when it might soar to unimagined heights or crash to unthinkable lows.
• If you did not face a date certain when you would need the assets to cover your retirement living expenses, this fluctuation would not be a problem. Your account would grow over time with some declines at times. But you do face a deadline. If a major crash happens just before or during your retirement, you have little or no time for your account to recover. Many people faced this situation during the 2008–09 crisis.

Except for the Roth IRA which is funded with money that has already been taxed, tax advantaged retirement accounts present you with a surprise . When you withdraw funds from your account every cent will be taxed as ordinary income. You cannot withdraw any of your money until age 59 ½, except for limited purposes. You must begin to withdraw it at age 70 ½.

Get our free ebook, “Insured Retirement Planning: Limiting Retirement Risk”

The Secret Retirement Planning Alternative

Few “experts” tell you that there is another universe of retirement planning tools that do not create these problems. These tools are life insurance, annuities, and long term care insurance.

Stock and bond investments are based on the fact that they rest on the partial ownership of a business or the debt of a business. A stock share represents part of a business. A bond certificate represents part of a loan a business took.

The primary reason the prices of shares and bonds rise and fall is that their owners and potential owners change their evaluations of the worth of the business.

Life insurance and related products are not investments. They are legally enforceable arrangements in which a financially strong business makes contracts with customers. In exchange for the payment of sums of money. These insurance companies guarantee they will pay specified sums if events described in the contract happen.

The danger to your financial well-being is the possibility that the insurance company could not meet its financial obligations. Otherwise, you will know reasonably well what financial resources you can count on.

In future posts, I will explain the details, but life insurance, annuities and long term care insurance are not subject to the same problems as investments in stocks and bonds.

• Your retirement nest egg will not be subject to the uncertainty of a stock market investment.
• You will experience much less danger of a major decline in your retirement assets.
• Various life insurance and annuity products provide tax advantages similar to and sometimes better than those offered by available tax advantaged accounts.

For a full explanation of this alternative retirement planning strategy,get our free retirement planning ebook here.

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