Are You on the Government Tax Plan in Retirement, or Your Own?

Could there be a bigger sin than not preparing adequately for taxes in retirement? Let's acknowledge up front that whether you're a Republican or a Democrat doesn't matter when it comes to retirement planning. They all want your money! If there is only one thing that both parties agree on, it’s their insatiable desire to spend taxpayer money. Don’t waste your time talking politics. BOTH parties have more than proven their inability to control spending and runaway liabilities. One party may want to do it differently than the other, or do it faster than the other, but neither is getting the job done. The process is unsustainable and eventually, as always, THE TAXPAYERS WILL BE THE BAILOUT PLAN. Covid-19 did not create this situation, but it undoubtedly will make our tax situation worse.

Reducing your tax burden in retirement is one of our most important missions, if not the most important one.

Questions to consider:

  • Are you deferring your taxes? If so, have you considered why?
    Current tax rates are historically low. While future tax rates are unknown, can they go anywhere but up? Might it be more beneficial to pay your taxes today for the freedom of not having to pay them in the future at the rates that the government unilaterally decides?

  • Will You Really Have a Lower Tax Burden in Retirement?
    People assume without much examination that they’ll suffer lower tax rates in retirement. But how do you know that is true? Even if you earn half of your current income in retirement, are you confident tax RATES will be the same in 30 years, or even next year? Could tax rates be double what they are today? What is your plan for that possibility?

  • Do You Have a Favorable Mix of Taxable and Tax-Free Assets?

    The more taxable assets you have, the higher taxable income you’ll have, and the higher effective tax rate you’ll incur, which means the less money you’ll have! Corporate or military pensions, 401k/403b plans, IRAs, and in most cases even Social Security are taxed.

    Other than a Roth IRA, can you think of another asset that is not taxed in retirement? If not, you might not have a favorable mix! If mostly everything you own is taxable, and you don’t know nor can you control what tax rates are, then aren’t you leaving a very large variable in your retirement funding to chance?

    We'll be frank. Taxes are likely to rise, considerably. We create potential financial solutions with that philosophy in mind.

  • Will the IRS Be the Greatest Beneficiary of Your Life’s Work?

    Without proper advanced planning, you run the risk of allowing the Internal Revenue Service the first crack at your money before any of it gets to where you really want it to go. When you open defer taxes, you enter a lifelong business partnership with the government. For every dollar you earn, it takes a cut, sooner or later. The problem is, only it gets to vote on what percentage you will pay. You do the work, it determines the cut. Isn’t that like a partnership with the Mafia?

  • Would you Like Your Financial Legacy to be Taxed, or Not Taxed?

    We can show you how to pass on as much of your wealth as possible completely tax-free and without probate.

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