Beyond the 401(k): A Texan's Guide to Building Real Wealth

For many Texans, the "set it and forget it" 401(k) has long been the primary tool for wealth building. But in today's economy, is it enough? When you factor in the high cost of living in our cities and a retirement target of over $830,000, it's clear that the old playbook may not be enough to win the game.

To build real, lasting wealth, you must understand and defeat the six enemies of your money :

• Inflation

• Taxes

• Market Loss

• Fees

• Time

• Unforeseen Events

  
  

  A traditional 401(k) or brokerage account, while valuable, can leave you exposed to several of these threats, particularly market loss and taxes.

This is where a smarter strategy becomes essential.

Moving from Variable Risk to Protected Growth

Most traditional investment accounts are

Variable. They offer high potential returns but also full exposure to market downturns, which can be devastating to your portfolio, especially as you near retirement.

At CGJ Financial, we help our clients implement an

Indexed strategy. Think of it as a way to capture the upside of the market without suffering the losses. This strategy typically offers:

• A "Floor" of 0%: You don't lose money when the market goes down.

  
  

  
  

• Market-Linked Growth: You earn interest based on the performance of a market index (like the S&P 500), usually up to a cap.

This approach provides the consistency needed to overcome market volatility and steadily build wealth.

The Power of Tax-Advantaged Growth

The second critical component is tax efficiency.

Many people save in "Tax Later" accounts like a 401(k) or Traditional IRA.

While you get a tax break today, you postpone the tax bill until retirement, when tax rates may be even higher.

We focus on structuring your wealth within:

Tax-Advantaged vehicles like cash value life insurance policies or Roth IRAs. This allows your money to grow tax-free and be accessed in retirement tax-free, protecting your nest egg from future tax hikes.

Building wealth in Texas requires a modern approach. It means using strategies that protect you from risk, maximize your growth, and shield you from unnecessary taxes. It's time to build a plan that truly works for your Texas financial reality.

Ready to explore a wealth-building strategy that goes beyond the basics?