Better Than Your 401(k)?
"(This account) has become a tax shelter for the rich... it gives the affluent tax advantanges far beyond those available to middle-income people through a 401(k) or IRA."
—The Wall Street Journal

I found something bizarre the other day when looking over Vice President Joseph Biden's financial disclosure report.

On page 5, Biden listed six personal accounts he owned which had a very unique feature:

They don't need to be reported to the IRS.

That means that, unlike a 401(k) or IRA, Vice President Biden doesn't have to pay taxes on this money now or later and doesn't have to pay taxes on any income generate in these accounts.

These accounts also have nothing to do with stocks, which is probably why you haven't heard about this from your money manager.

In fact, this private account has become so popular that other senators have also placed some of their money here.

Virginia Senator Mark Warner, for example, the second-richest member of Congress, currently stores over $1.5 million in this tax-free account.

Maryland Senator John Delaney also has an account.

As does Arizona Senator John McCain. (McCain, in fact, funded part of his 2008 presidential campaign using $1 million from this account. Unlike traditional retirement plans, money can be accessed anytime without penalty.)

What is going on? Are all these senators hiding their money ahead of a possible Obama-led raid on retirement accounts?

"It's possible," says income expert Tom Dyson who heads up Common Sense Publishing, an investment research firm based out of Florida. "But it's not the only reason."

"When you look at this account, it's no secret why many of the elite are storing money here. It's probably the safest and most private retirement account in America right now."

According to Dyson, while equities dropped almost in half during the crash years of 2000-2008, only 1% of the investments held in these accounts were "non-performing."

Another mark of safety: Eight companies Dyson studied that provide these accounts have now paid out for 121 consecutive years.

That's perhaps why some of the richest peope in the world have long been rumored to have used these types of accounts.

A Loophole Soon to be Closed?

Accoding to Dyson, almost anyone in America can open an account. But the window to take advantage of this opportunity may be closing.

"There have been at least 13 serious attempts to repeal the tax advantages of this account," says Dyson. "That's why some people I've talked to have gone so far as to open up five or six separate accounts. They want to get locked into these advantages."

In order to help members of the general public access this information, Mr.Dyson put together his findings in a special report readers can access for free (click here to learn more about how to access this report).


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