“Tax Free” vs. “Tax Deferred” and the consequences for not knowing the difference!
Are you positioning yourself correctly for your retirement between taxable, tax-deferred and tax free asset classes? This is extremely critical when you begin drawing income from these asset classes later in life. If your asset classes are not positioned correctly, your Social Security income benefits could be exposed to tax! In fact, up to 85% of your Social Security benefits could be subject to income tax! If you’re using a traditional tax deferred qualified plan like a 401k, once you begin to supplement you Social Security with it, it will trigger taxation on you Social Security Income. Don’t let this happen to you!
Ginn Insurance will demonstrate the impact of these investments over time and show how small changes in your investment structure can impact your retirement income significantly in your later years. In fact, depending on you situation, we’ll show how to reduce your tax liability, increase your retirement income and grow your asset base. For more information go here.
Here are the income levels and tax brackets for Social Security income benefits: As you can clearly see, it does not take too much income to push your benefits to 85% exposure (right where Uncle Sam wants you!). We’ll show you how to avoid this and take control of your retirement money. Contact us with your details. We consult with clients in all 50 states.
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