In America There Are Two Tax Systems
Below is a MRR and PLR article in category Finance -> subcategory Taxes.
Two Tax Systems in America
Summary
In America, there are two tax systems: one for the informed and another for the uninformed?"both completely legal.
Article
Over forty years ago, Justice Learned Hand, a renowned American jurist, highlighted this reality with his famous statement. Today, this notion extends to the often misunderstood realm of Individual Retirement Accounts (IRAs). Staying informed about IRA options is crucial for maximizing retirement benefits.
Since IRAs were introduced in 1974, most Americans have relied on brokers and Wall Street affiliates to manage their IRAs and 401(k)s. This passive approach might have continued indefinitely if not for the Wall Street crash of 2000, which resulted in over a trillion dollars lost in IRA and 401(k) equity. This event challenged perceptions of Wall Street's reliability.
Had more Americans understood early on that their IRAs and 401(k)s could be invested in real estate assets like Tax Lien Certificates, Tax Deeds, and Mortgage Notes, many could be retiring with substantial wealth today.
By March 10, 2005, NASDAQ had only recovered to 59% of its 1999 value, reflecting a $100,000 investment dropping to approximately $59,000. Despite pervasive marketing portraying Wall Street products as the sole investment option, their performance over the last 30 years has been lackluster.
Conversely, real estate has consistently outperformed other investments over these decades. Despite this, over 90% of IRA and 401(k) funds are invested in financial products. Why? Are Wall Street investments inherently superior to real estate? Evidence suggests otherwise:
- "Since major housing organizations started keeping records in the 1960s, there hasn't been a single year when the average existing U.S. residence lost value." ?" FORTUNE Magazine, August 12, 2002
- "After the longest, strongest bull market in history, the average American has built more wealth owning a home than investing in the stock market." ?" DENVER Post, March 14, 2002
Given these insights, it’s puzzling why our IRAs and 401(k)s aren't primarily invested in real estate rather than Wall Street products. It's essential to educate ourselves about where our hard-earned money is going before it’s too late.
Have an opinion or question? Contact me at [CarlHampton.com](http://www.CarlHampton.com).
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