Looking for insightful answers to your financial situation?

FALSE - If you lost 30% of $100,000, you would only have $70,000. You would have to earn a 42% gain the following year to get back to your original $100,000.

FALSE - If working with advisor A, you lost 30% the first year, then gained 50% the following year, while working with advisor B you received a 10% return each year, you would make more money working with advisor B.

TRUE - The keyword is "largest." You do not need the largest gains all of the time. Sometimes, during and leading up to your retirement years, it is better to receive a portion of the gainswhile having the ability to never take any losses.

TRUE - Per the IRS website: "You cannot keep retirement funds in your account indefinitely." These forced distributions are called Required Minimum Distribution(RMD). They must begin by age 72. If minimum distributions are not taken each year, the years distribution are subject to a 50% penalty.

FALSE - Imagine a farmer. A farmer would rather pay the taxes on the seeds they plant, rather than the harvest those seeds yield. In certain instances it may be prudent to pay taxes on the money invested before the growth. A Roth IRA is an example, yet there are even better ways to take advantage of taxation rules.

FALSE - These accounts pass the tax liability onto your heirs.

FALSE - Non-Qualifed Mutual Funds’ main benefit is the ability to have liquidity, use, and control. However, with this benefit comes taxes. They fall into the Taxable Bucket.

TRUE - While this is true, there is a better way: become a wealth builder and use your money as collateral and take out a favorable loan so your account continues to grow - uninterrupted.

TRUE - Indeed he did. Albert is quoted as saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it...he who doesn’t...pays it.”

FALSE - While the statement is true, the government doesn’t clearly promote it this way. Deferred taxation does two things: It defers the taxes, and it also defers the tax calcuations. Ask yourself, do you believe taxes will be higher or will they be lower in the future?

FALSE - In most cases, put money in only up to your company match. Then, consider alternative financial vehicles as they may be a better fit for your unique situation.

FALSE - If you make over $203,000 (MAGI) or more, you do not qualify to contribute to a Roth IRA. The people with the largest tax problems aren’t able to contribute to this tax-free account.

TRUE - Always have enough money liquid to cover 6-12 months in case of emergencies.

FALSE - There is one wealth accumulation vehicle that has all three benefts. This is the vehicle the wealthy choose and we will be discussing it more in a later section.

TRUE - The Top 25% of income earners account for 86% of the government’s tax revenue. The wealthy seek financial vehicles that can mitigate - or completely eliminate - taxes altogether.