We live our lives at the speed of the internet, so often we don't find time to address the issues of our financial future, as much as we might like.
Truth is, that depending upon your tax bracket, the Tax Man could be reaping up to 20-30% of your earnings every pay period.
Think about it, didn't you put in all the effort to earn the money? Wasn't it you that drove in bumper to bumper traffic, maybe dealt with disturbed customers, or even had to miss out on your children's athletic events while working long work weeks? You did your job and did it well, yet the government always gets a bigger share.
To make it worse, income tax is just the beginning- What about all the other taxes you're paying: state income tax, Medicare tax, phone tax, utility tax, gasoline tax, sales tax. Soon, we will be looking at healthcare taxation. Just about every transaction you are a part of, is taxed. When you eat your breakfast or wash your floor or use your phone and internet, you are taxed. You drive down the road, go for lunch or take out your recycled garbage, you are taxed. Sounds insane, huh? So, wouldn't it be just as crazy to pay more taxes on your retirement money, than you have to?
The Government, by design, has targeted over a Trillion Dollars in its plan to allow American's to save tax-deferred (supposedly to help them save and invest for retirement without paying taxes upfront). Yes, government-sponsored qualified retirement plans like 401k's, 403 B's and traditional Ira's were carefully developed to create a large crop of potential taxable income when people begin using their retirement savings.
So if you are not looking out for your own best interests when it comes time to start distributing your wealth, who will? The profits of these types of plans will end up in the IRS Kitty.
Conjure up this picture in your mind, for just minute or so. Let's say you are a farmer. Each spring you purchase your seed corn. You smell the fresh spring air that evening, knowing that soon you will be out in your fields planting. Your hope is of a healthy and plentiful crop by fall harvest. Good weather, the right amount of rainfall and fertilizer, coupled with some vigilance and pest control, nets you a harvest that is greater than expected. The trucks take those crops to market and you are pleased with the results.
Just when you are looking at the last trailer dust up the road out from your farm, an official looking government vehicle drives up by your porch, and man in a fancy suit gets out. You might be a little nervous as he hands you his card. He asks you "hello Mr. Farmer, are you interested in paying taxes on the on the bag of seed corn you bought this spring, or on the 10 trucks that just pulled away"?
We have choices in life, don't we? You can pay taxes on the money you start out with, your seed, or you can pay taxes on the crop, the tax on the crop is a much larger amount of money because it is the results of your labor.
With government sponsored, tax-deferred retirement plans, you pay taxes on all the increases, or crops. WealthCamp Advisory Team will show you how you can pay taxes on the seed from now on. YOU will get to keep all the money you grow.
Oh, but you say you have heard that your tax-bracket will be lower in retirement? Really? Let's say you invested in a deferred compensation plan for 30 years. You were lucky enough to average 6.5% and ended up with $498,363.11. You never paid taxes on that money and you think you have a nice nest egg. But, how much of that belongs to the Tax Man? During distribution, you decide to take $73,000 per year to live on. Let's also assume that you are still earning 6.5%, and even with that, you will run out of money in 9 years. In addition, you will pay tax on that $73,000 (your crop) at 33% tax bracket. So you will be taxed $24,090 in taxes every year. During that time you will have paid over $216,000 in taxes.
You were told way back when you started your deferred account that by waiting and then paying on the crop you would save $49,500. Well, now that means that you will pay the IRS back all that you thought you had saved in the first 2.5 years. As well, in the next 6.5 years you will continue to pay up to more than $167,000. That was your crop, right? Scott Scholtz an author on the subject, maintains that you could end up paying up to 5 times more taxes using solely qualified plans like 401k's, than you saved during your working career.
What about all those deductions? Children move out, mortgages are paid off. Do you really believe tax rates will be lower in the future with a federal deficit that's closing in on $30 Trillion or more? Who can predict?
The opportunity exists NOW, to change to a better way with at least some of your money. Start taking control. Start paying tax on your seed.
Reap additional benefits such as:
- Death Benefit for your loved ones
- Reducing Provisional income-tax in relation to Social Security Claiming Strategies.
- Principle Protection
- Gains Protection
- Predictable Income options
- Opportunity for attractive growth
- Sleep Insurance against a volatile Stock Market
