The Farmer Story: A quick story that shows how your retirement strategy may correlate with a farmer.

FOR IMMEDIATE RELEASE
Baltimore, Maryland, United States of America (Free-Press-Release.com) January 18, 2012 -- Two farmers purchased new parcels of land where they wanted to grow crops, but they both needed seeds.

Farmer #1 went to the government subsidized store with a $100 to buy his seeds. The store manager made him an offer. "I know you're just getting started so, I'll knock 25% off the price of your seeds today and you can just give it to me as percentage of what you make from them later." The farmer liked the sound of that. He just put $25 back in his pockets. Feeling pretty savvy in his deal-making, he walked out with his seeds.

Farmer #2 stepped up to the counter and the store manager offered him the same deal. "No thank you" responded the Farmer #2. "I'll just pay you what I owe now." He handed over the $100 and walked out with his seeds.

A few months later, their crop came in and he sold it at the market. Both farmers made $1000 on the sale of their crop! They were ecstatic!! As they were leaving, the store manager called after Farmer #1 and reminded him that it was time to settle up. Farmer #1 reached into his pocket to count out the $25 he owed. The store manager frowned. $25 wasn't our deal. Our deal was 25%. You owe me $250. The farmer couldn't believe his ears. "That's more than twice as much as the seeds cost!!" "Never mind mind that!" said the store manager. Pay up or I'll have you thrown in jail. The farmer didn't want to go to jail, so he paid the $250.

Farmer #2 just shook his head and kept walking....with $1000 in his pocket.

What's the point? If you are saving for retirement using a 401k, Traditional IRA, SEP, etc., you are like Farmer #1 You're getting a tax break on your invested dollars today in exchange for a tax bill on the growth in the future!

Doesn't it make sense to be more like Farmer #2? I can help you. Let's talk. www.helpwithplanning.com

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