Do you know where your congressman invests his or her money?
According to the Palm Beach Research Group, a Florida-based investment research firm, the answer is surprising. After conducting a 3-month research study, they found at least 54 U.S. congressmen have invested $10.1 million in an off-the-grid safe haven they call a “770” account.
“It’s bizarre,” says Tom Dyson, a former Citibank forensic accountant and one of the co-founders at Palm Beach Research Group. It is estimated that only one American in 1,500 has one of these accounts—less than 0.1%. And yet, more than 10% of all congressmen have one. What do they know that we don’t?
These accounts, which exist throughout the United States, are not held in a bank and have a few special features that may make them attractive to those who hold them:
1) They pay up to 47 times more than standard bank accounts
According to Bankrate.com, the average interest rate bank accounts pay right now is about 0.09%. Over time, 770 accounts average between 4.5-5%, almost 50 times more than what banks pay.
2) They compound money tax-free
Unlike traditional bank accounts, money stored in a 770 account accumulates (and can be withdrawn) 100% tax-free. It’s a unique tax benefit that led the Wall Street Journal to declare this account “offers tax advantages far beyond those available… through a 401(k) or IRA.”
The money stored here can also be passed on (if under $5 million) tax-free to heirs.
Because of these benefits, many of Washington’s top brass, including 2016 presidential hopeful Hillary Clinton, current Vice President Joe Biden, and America’s richest senator, Mark Warner, have stored money in this account.
(In fact, according to government records, Mark Warner has stored over $1.5 million of his money in the “770” account.)
As part of their research, the Palm Beach Research Group found many average Americans (non-politicians) who were able to take advantage of this little-known account. They’ve put together their research in a free online video that’s available by visiting the website www.770research.com.