In America There Are Two Tax Systems

“In America there are two tax systems, one for the informed and one for the uninformed. Both systems are legal.”

One of America’s most famous jurists, Justice Learned Hand made this statement over forty years ago. When used today, one would certainly have to include the little understood world of Individual Retirement Accounts (IRAs). The point I am making here is that we all need to keep ourselves informed about what IRA alternatives are available to us. Being uniformed about these IRA alternatives almost certainly means we are not taking full advantage of the opportunity to secure better returns on our retirement dollars.

The vast majority of Americans have since their (IRA’s) introduction in 1974 allowed our IRAs and 401Ks to be directed by someone else, such as the friendly Broker and their Wall Street affiliates. This easygoing very passive approach “let someone else do the work for me” attitude may well have continued forever had it not been for the Wall Street crash of 2000. With more than a trillion dollars lost in IRA and 401K equity alone, it challenged the very way we viewed Wall Street.

The clear fact is if we...