We need a separation of the economy from the government.

Whenever we face a challenge where our income is less than our outgo, we have to face the choice of either to cut our spending or raise our revenue or income.

It’s very obvious that congress is not cutting expenses but rather increasing them, by quadrupling the deficit we had last year.

What do you think congress is going to do to increase revenue?   There are two obvious answers:  either they have to increase taxes or print more money (which causes inflation).

There are two highly predictable  facts that I’ve been talking about lately 1) Your money is never going to be worth more than it is today and 2) You’re current tax bracket is likely the lowest tax bracket that you’re ever going to be in.

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I’m a big proponent of avoiding tax-deferred investments, like IRAs and 401(k)s, because 1/3 of your money will go out the window when you begin to withdraw your money.

The day you will suffer your greatest loss is when you begin to access that money.

So what should you be doing right now?  You need to be repositioning your serious money — that money in IRAs and 401(k)s that may have lost 20%, 30%, or even 40% of its value.

Did you know that people who followed these strategies did not lose any money during the last two years?  Already, many who implemented these concepts are on track this year to experience 12%, 15%, or even a 16% gain.  You need to understand how to do this!

Why I don’t own an IRA or 401(k) and never will. I’ve always put my serious cash such as college savings, retirement, and home equity into investments that will accumulate money tax free.

And then when I access that money it is tax free, including the gain. When I die it also blossoms and transfers income tax free. I make sure this money is liquid, safe, and earns a competitive rate of return. I choose to put my cash into Maximum Funded Tax Advantaged (MFTA) Life Insurance.

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