Do you have lazy idle equity in your home?

If you had enough money to pay off your mortgage right now, would you? Many people would. In fact, the ‘American Dream’ is to own your own home, and to own it outright, with no mortgage. If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so.

Consider the “
large chunk of cash ” or equity in your home:

How Liquid Is It?
Can you get your money out of your home at any time?

How Safe Is It?
Is it guaranteed or insured? What will happen if the housing market goes down?

What Rate Of Return Can I Expect?
Does your equity have any rate of return?

Withdraw up to $60,000 Annually From Your IRA or 401(k) with No Tax Consequence

Most Americans are lured into saving for retirement with traditional qualified retirement plans, such as IRA's and 401(k)s. They are convinced by financial advisors to contribute pre-tax dollars to 401(k) plans or place tax-deductible contributions into IRAs because of the tax advantages during the contribution and accumulation phases of their retirement planning. They seem to ignore the two most important phases - when withdraw your money for retirement income, and when you pass away and transfer any remaining funds to your heirs.

One of the original IRA tenets held that deferring tax until retirement was advantageous because funds would likely be taxes at a lower rate. That is no longer axiomatic. You may well live out your retirement in the same or higher tax bracket if you accumulate a respectable retirement nest egg. In fact, effective tax rates will likely be higher in the future. So why postpone the inevitable and increase your tax liability?

If you are accumulating in yet-to-be-taxed IRAs and 401(k)s, ask yourself: "Are you planning your retirement or Uncle Sam's?"

It doesn't make sense to postpone tax for some perceived advantage in the future. You should be aware that your IRA, pension, and 401(k) benefits will probably be taxable at a higher rate at retirement. As many people approach retirement, they find themselves with a free and clear home. So, they no longer have the mortgage interest expense deductions. Their children have matured into adults, so they can no longer claim them as dependents. They are no longer contributing to tax-deductible retirement plans. Thus, in retirement, they find themselves in as high or higher tax bracket as they were during their earning years even if they have lower income.

If you were a farmer, would you rather save tax on the purchase of your seed in the springtime and pay tax on the sale of your harvest in the fall, or would your rather pay tax on the seed and sell your harvest without any tax on the gain? I would prefer tax-advantaged harvests.

There is a means by which you can draw out your retirement free of income tax. Not only that, but there is also a means to avoid paying tax on up to 85 percent of your Social Security benefits at retirement. Are you interested in how you can accomplish this?

Many may qualify to reduce or totally eliminate paying tax on up to $60,000 per year of withdrawals from their IRAs or 401(k)s. The key is to not wait until age 701/2.

Begin now! If you are over age 591/2 with money trapped in IRAs and 401(k)s - especially in you don't need the income yet - don't wait any longer thinking that postponing tax is saving you money. Postponing or "stretching out" your distributions will likely increase your tax liability. Many retirees have been helped to increase their net spendable retirement income by as much as 50 percent.

Through American Money Group, learn how to successfully transfer up to $600,000 ($60,000/yr for 10 years) out of your IRAs or 401(k)s between ages 591/2 and age 701/2, with no tax consequence.

The strategies and concepts taught in are introduced in a revolutionary new book, Missed Fortune 101 by Douglas R. Andrew, released January 3rd, 2005 by Time-Warner.