(Including:  Retirement Planning, 7 Costly Mistakes, Taxes, Social Security, and more!)

401(k) Rollover Advanced Banking Concept CD's / CA's College Planning Diversifying
Fixed Indexed Annuities Extended Care Insurance Growth Income Inflation IRA Conversion IRA Maximization Leveraged Retirement Plan Triple Compounding Life Insurance Unfair Tax
Non-Qualified Accounts Senior Income Solution Pension Maximization  Laddering Split Fund
Qualified Accounts Unnecessary Tax

401(k) Rollover

Many people take advantage of their 401(k) plan at work, but what they fail to realize is the many other choices available beyond the limited selection the company offers.  Money in a 401(k) can be rolled over into safe, higher growth accounts without affecting their tax-deferred status.

 Advanced Banking Concept (ABC)

This strategy allows you to re-capture all the money you are paying in interest, and bank it in your retirement account.  The same amount is still paid out every month, and all creditors are completely satisfied, but now those interest payments are going toward your retirement income!  This includes interest from credit cards, car payments, bank loans, and many more. 

 CDs / CAs

Both CD's and CA's are simple, safe, and insured.  They both work virtually identical--a predetermined interest rate is credited every year for a specific number of years.  The longer the time period used, the higher the interest rate.  The main difference is that CA's offers additional advantages--

 --10% access to funds without a penalty
 --typically higher rate of return for same time period

If you are "rolling-over" your CD's then you are paying taxes on money that you are not using--
The "Unnecessary Tax".  By simply rolling your CD's into the appropriate CA's you can lower your taxes and take advantage of Triple Compounding

College Planning

A college education is becoming more and more important for financial success in today's society.  Unfortunately, the cost of a college degree is becoming more and more expensive as well.  This is why a good college plan is so important. 

When creating a plan it is important to look at many options:
--How fast will my money grow?

--What are the tax implications of this growth?
--What can the money be used for? 
--What happens if my child does not go to college?
--How will this affect the free financial aid available to us?

Too many people fail to answer all these questions and lose out on thousands of dollars for their child's education.


Whether approaching retirement, or living in retirement, it is important to protect your retirement funds.  Diversifying is the strategy of protecting your money by having accounts with varying products, earning potential, and degrees of safety.  It is the old adage of "Don't put all your eggs in one basket".  The closer you are to retirement age, the more money should be transferred to safer, higher-interest accounts.  Properly diversifying requires meeting with a qualified professional to assess your individual risk tolerance and strategy.  It takes a little time, but it is a fundamental element of pre-retirement planning.

 Fixed Indexed Annuity Account (FIA) 

Safety and the potential for higher returns come together within the Fixed Indexed Annuity Account (FIA).  Being linked to, but not actually in, the stock market allows for potentially higher returns with no risk.  FIAs credit you with a return based on changes within your selected index (ie- S&P500, NASDAQ, Dow Jones, etc...).  You can NEVER lose principal or credited interest due to a drop in the market.  If the market is down for the year, you simply "stay even" that year--neither principal nor interest earned will be lost.  Think of it as stair steps--you can only go up...never down.  The only way your account value can ever go down at all is when you decide to withdraw the cash!  FIAs are great for those who want the potential for higher returns, but don't want high risk.

 Extended Care Insurance

For many seniors, maintaining their independence and not becoming a burden to their children is an important part of retirement.  Extended Care Insurance will provide the funds needed to keep you living at home if an injury or illness strikes and medical assistance is needed and it will also help pay the costs of a nursing home or long term care if that should become needed. 

Refundable Extended Care Insurance offers the option to have all of your premium returned to you at any time for any reason (not counting funds already paid to you in the form of claims).  If the insurance is kept for your life, and never used, the full premiums plus interest will be paid to your heirs. 

Extended Care Insurance is a must for any senior who wants to protect their independence, their assets, and their families.

 Growth Income

Growth Income products are designed to provide safety, higher growth potential, and an advantageous income stream.  These products are ideal for money designated to grow for at least 10 years before being used as income.  Growth Income products can combine an immediate bonus (up to 25%), higher growth potential, and safety to create a powerful future guaranteed withdrawal income stream.  Some Growth Income products even provide for a possible increase in income every year to help provide inflation protection. 

The income stream created is guaranteed to continue every month for life, and it can never decrease--it can, however, increase your income.  These increases can never be taken away.  If you should pass away, the balance of your account will be left to your named beneficiary.

Growth Income products have cemented themselves as a very powerful retirement planning AND income tool by creating a guaranteed lifetime income, with increases, that can never run out or decrease.


Your money is only worth what it can buy.  10 years ago, a $1-bill could buy a loaf of bread...but today that same dollar is not even enough to get a candy bar.  If your savings/investment accounts are not growing as fast as the inflation rate, then even though your money is growing, your purchasing power is going down.  That is why it is so important that your interest rate is more than the current rate of inflation...or your retirement account could be worth less tomorrow then it is today.

 IRA Conversion

An IRA Conversion consists of transferring the qualified
funds within an IRA to a Roth IRA.  Both IRAs and Roth IRAs provide Tax-Advantaged growth, but only the Roth IRA also allows Tax-Free withdrawals.  The Roth IRA also does not require an annual distribution the way a Traditional IRA does, so when and what you withdraw from a Roth IRA is completely your decision.

Although taxes must be paid when converting to a Roth IRA, because of government tax law, your "wealth" will remain the same.  When the correct strategy is implemented, your wealth will increase during an IRA Conversion.  Despite common urban legend (actually believed by some accountants) complete access is available to 100% of your funds from the first day of the conversion.  Contributions can be withdrawn at anytime tax free and penalty free.

An IRA Conversion will allow greater growth to your retirement wealth, tax-free income, and most importantly: Choices with what to take, and when to take YOUR money.

 IRA Maximization

An IRA is a common retirement vehicle, but many don't realize how it works or the options that are available for it.  Starting at age 70 1/2, money MUST be taken from the Traditional IRA every year.  Ordinarily, the funds are not guaranteed to grow and they CAN run out.  If you do manage to keep money in your IRA for your children's inheritances, approximately 40% or more will be lost to taxes.

IRA Maximization allows you to guarantee the same higher monthly income from your IRA that can never run out.  IRA Maximization will also allow you to pass on the current FULL amount of the Traditional IRA to your heirs with No Taxes

IRA Maximization is a key piece to income planning AND inheritance planning.


Often a strong financial plan requires the use of multiple safe surrender period products.  Unfortunately, these funds become untouchable during these time periods.  Short term products make your money more quickly available but have lower interest rates that often do not keep up with inflation, while longer term products offer the higher interest rates but lock up your money for a longer period of time.

Laddering is a strategy allowing you to take advantage of higher interest rates while still maintaining emergency fund access to your money.  It is a simple, quick, and effective strategy for cash building.

 Leveraged Retirement Plan (LRP)

The Leveraged Retirement Plan is a specialized strategy for business owners.  The LRP allows business owners the ability to protect their business by leveraging the companies revenue to create huge amounts of retirement income. 

The LRP concept is similar to a bank lending your business $1 million for 10 years.  The Business pays annual "simple tax-deductible interest" on the loan, while the $1 million earns a "higher compounded tax-deferred" interest rate.  At the end of 10 years, the $1 million is given back and all the interest it accumulated is kept by YOU.  The LRP is a very powerful retirement tool, and very popular among business owners of all types.

 Life Insurance

Life Insurance is an incredibly powerful tool for Estate Planning, Inheritance Planning, and Family Protection.  It will guarantee money to your family quickly and efficiently allowing you to protect their futures.  The cost is pennies on the dollar, and it always guarantees to pay out more money than you put into it. 

If structured correctly, Dual Duty Life Insurance can be one of the easiest and most effective retirement savings tools available.  These products use tax-advantaged growth to quickly accumulate massive amounts of cash value which can be later taken as income.  At the same time, it provides a death benefit to protect your loved ones and help secure their future.

If there is anyone who you care about, Life Insurance should be purchased.

 Non-Qualified Accounts

Non-Qualified Accounts consist of assets purchased with after-tax dollars.  These include Savings Accounts, CDs, and Stocks purchased with after-tax dollars.

 Pension Maximization

When it comes time for a worker to take their pension they are faced with a decision: Take a larger income but leave your spouse unprotected... or... protect your spouse but take a smaller income.

Pension Maximization will help you maximize your pension to it's fullest ability.  This Strategy which can be done at the time of, or before, retirement will allow you to take the full, larger income and still protect your spouse as well.

 Qualified Accounts

Qualified Accounts consist of all assets purchased using Pre-tax dollars.  These include Traditional IRAs and 401Ks.

 Senior Income Solution (SIS)

The Senior Income Solution accomplishes 3 important goals in 1 simple plan.

1. Increase and guarantee income for life 
2. Reduce income taxes and help reduce tax on Social Security Benefits
3. Allow heirs to collect a larger inheritance

The Senior Income Solution is safe, guaranteed, and effective.  It is one of the most powerful tools to combine Income Planning and Inheritance Planning into one easy plan.

 Split Fund

Interested in living solely off your interest, but would like a higher income return?  The Split Fund could be the answer!  The Split Fund provides larger monthly income checks to you, while maintaining the principle amount for your future or heirs.  Split Funds are set up to run 5-10 years at a time.

By "splitting" the money into the correct combination of safety and return, you will optimize the income stream to yourself (approx. 5%) with a guaranteed full return of principal at the end of the term.  Split Fund income is also tax-advantaged if using 

 Triple Compounding Growth

Triple Compounding Growth is one of the great secrets to wealth building.  This secret starts by avoiding the Unnecessary Tax and ends with far greater returns on your investment.  When you avoid paying the Unnecessary Tax, you greatly increase the amount of growth in your account.  You are now earning interest on your principal, your interest, AND the money you would have paid in taxes. This increase in interest creates a domino effect for growth within your account.

To show the immense power of this secret, look at two hypothetical identical accounts.  Each one will start with $1, and grow 100% each year for 25 years (this growth rate is hypothetical and for illustration purposes only).  Account A pays the Unnecessary Tax every year (30%)...and Account B is designed to avoid the Unnecessary Tax and creates Triple Compounding Growth--Account B will pay all taxes owed in the final year.

 YEAR           ACCOUNT  A                ACCOUNT B
    1                  $1.00                           $1.00
    2                    1.70                            2.00
    3                    2.89                            4.00
   ...                    ...                              ...
   25              $339,449                    $8,088,608  (after 50% tax deducted!)

Compare the two accounts.  Both earned the same interest rate for the same number of years, but Account B applied Triple Compound Growth. 

NOTE: You can NOT just stop paying taxes on your current accounts.  To avoid government fines, you must use an account approved for Triple Compounding Growth.

 Unfair Tax (Reduction)

The Unfair Tax is the tax on Social Security Benefits which was never supposed to exist.  When FDR signed the Social Security Act into existence he promised that the benefit would never be taxed.  In the 1980's, however, congress passed a law allowing up to 50% of Social Security benefits to be taxed, and in the 1990's congress amended the law allowing up to 85% of your Social Security benefits to be taxed.

Although the government does not advertise this: The Government does allow you to limit and even eliminate the Unfair Tax that you currently pay.  Through proper restructuring of assets and the use of legal tax-reduction strategies, you can help FDR keep his promise and reduce/eliminate the tax on Social Security benefits.  This reduction of the Unfair Tax is done without lowering your current income level.

Although the government has made these strategies available and suitable for the general public, they do not work in every case.  It involves strategies not commonly used by attorneys or accountants, so contact a reliable financial consultant to see if you qualify.

 Unnecessary Tax (Elimination)

The Unnecessary Tax is the tax on an unused investment gain such as CD interest which is not taken out for income.  The Unnecessary Tax causes you to pay taxes on money that you never take out of the investment...this not only causes a higher tax-burden for you, but also decreases your ability to use Triple Compounding to greatly increase your wealth.

By using government approved techniques and investments you can quickly and easily reduce or eliminate the Unnecessary Tax you currently pay.  This is commonly done by
switching from CD's to government approved CA's
.  This simple switch will keep your money completely safe, add all the bonuses of a CA, allow Triple Compounding, and eliminate the Unnecessary Tax on this money!

Other factors and investments also contribute to the Unnecessary Tax and a variety of government approved alternatives exist.  These strategies and products are not performed by attorneys or accountants, so speak with a trusted financial consultant to learn how to reduce/eliminate your Unnecessary Tax.

(This is only a partial list of how Colborn Associates can help you.)

Colborn Associates - Giving you Financial Choices

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