Liberty-Friendly Alternatives to the Traditional 401k

401k was created in the 1980's to combat the rising cost of pensions. Its name comes from the subsection of the Internal Revenue Code which created it. IRC section 401k permits workers to contribute a portion of their cash wages to a savings account on a pretax basis.

While pretax is better than post-tax savings, there are still a number of issues with the 401k that make it not the most liberty-friendly option available.

First, you do not have access to your savings until59 1/2 years of age without paying penalties and interest... in which case you might as well have been taxed to begin with.

Second, ever heard older people say, "I remember when bread used-to cost a nickel?" Inflation by the Federal Reserve is in effect no different than a tax; making each dollar worth less each time they fire up the ol' printing press. Needless to say, you will not be getting out what you put in to your savings decades ago.

Further, fiat currencies have historically been fair-weather-friends in times of economic crisis compared to precious metals or objects with high use-value. Given our current national debt trends, the future for retirement accounts holding USD looks shakey.

Those looking for a liberty-friendly alternative to the 401k, should consider gold or gold IRAs (or any other precious metal). While the dollars you bought the gold with would have been subject to income tax (says the IRS), precious metals will stand the test of time and hold up in an economic crisis or in the face of out-of-control inflation/reckless government spending. Gold is considered property and not a currency by the IRS so only sales tax would apply. If you live in a state with sales tax, and order online from an out-of-state company, the company will likely not charge you sales tax (but you will likely be expected to pay 'use tax' to your state).

Gold IRAs, like all IRAs, limit your access to your savings without reaching 59.5 years of age or hardship but gold IRAs will be pretax AND in something more stable than Federal Reserve Notes!

One provider of physical precious metals like gold and silver as well as Gold IRAs is a company called Lear Capital. Services like these help diversify against the volatility of a traditional investment portfolio and defend against the pending threat of economic crisis. Gold IRAs are a great alternative to the traditional 401kand 403b retirement plans.

To find out more about alternative currencies and counter-economics see here and if you are interested in making moves towards more liberty friendly retirement plans, check out Lear Capital.