Tax Free Retirement Planning

Tax Free Retirement

If taxes are going to be higher in 20-30 years (history has shown they will), why are so many American’s using tax deferred investments to save for retirement when they could just pay the tax and invest tax free from the start?  Pay the taxes on your seeds and the harvest will be tax free (the proper way to invest)!  Seems pretty simple!

If you’re one of the million American’s currently saving for your retirement using a tax-deferred investment such as a 401(k), 403 (b), Traditional IRA or other qualified plan, this could have damaging results to your finances in your retirement years.  Why?  Have you ever looked at the front page of your Social Security Statement?  It says right on the front page that it will be exhausted in 2037!  This is a warning signal that taxes are going to be higher in the future.  Using a tax deferred investment to fund your retirement when you know taxes will likely increase; Is this really a wise decision?

These tax-deferred investments will increase your Social Security tax bill and weaken your ability to grow your asset base when you begin drawing on them for income.  Also, you don’t even know what your tax rate will be in 20-30 years when you’ll need the money (Social Security tax rates).  Why would you want the unknown factor (taxes) in your retirement planning when you could eliminate it from the start?  These tax-deferred investments were meant to benefit the government by ensuring future tax revenues – not the individual investor!  American’s need to wake up to this fact!  On paper your retirement may seem possible, but when you’re faced with the reality that Uncle Sam has his hands in your retirement account(s), this might not be possible as soon as you might expect.  With a tax deferred retirement approach, you’re funding your retirement and Uncle Sam’s, and he’s in full control over how those funds will be taxed in the future when you get ready to use them!  He controls, among other things, when you can have YOUR MONEY, how much it will be taxed and penalties if you withdrawal early.  These critical factors are in addition to the accounting, administrative and investment fees that many of these tax deferred products are bundled with.

Ginn Insurance can help clients reduce and even eliminate this burden and put you back in control of your retirement money.  We demonstrate how all your different asset classes fit together.  Meaning, we show the how the impact of all your taxable, tax deferred and tax free investments will impact your Social Security income tax bill and further accumulation of your existing asset base.  Further information can be found here.  Ginn Insurance consults with clients on this issue.  Schedule your appointment today.

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