Why Deferring Taxes Isn’t the Advantage Many People Think It Is

During a recent event in Chicago with some of the brightest minds in the financial industry, Doug Andrew had an interesting conversation with a highly respected CPA. He and this accountant discussed the myth that a vast majority of Americans cling to as they prepare for retirement. This is the myth that saving their retirement funds in a tax-deferred vehicle like an IRA or 401(k) is optimal because they anticipate being in a lower tax bracket at retirement. Unfortunately, this hasn’t been axiomatic for over two decades now. A lot of people with savings in tax-deferred vehicles are in for a very rude awakening in the not so distant future, unless they recognize and deal with the risk coming right at them.

Here’s a sneak peak at the dangers revealed and the solutions offered in this week’s episode:

  • Why do tax-deferred accounts promote a false sense of security to the folks who use them? It starts with the realization that a large chunk of that nest egg isn’t really yours.
  • How do people who are faithfully saving for retirement hamstring themselves by doing the financial equivalent of driving down the highway with one foot on the brake and one on the gas?
  • Doug explains how, without the deductions you’ve always counted on, it’s entirely possible to pay more taxes in retirement than you were paying during your peak earning years.
  • Learn why so many people lean on the hope that by deferring taxes until some future time, that taxes will go down. One look at how Congress is spending should tell you that taxes aren’t going down any time soon.
  • Discover why preventing tax concerns now is preferable to trying to “cure” tax concerns down the road. Just like your health, prevention is the wiser course.
  • There are alternatives to accumulating your retirement savings in tax-deferred vehicles. Learn what they are and how to put your worries over future tax increases to rest.
  • And much, much more…

Start by visiting with a wealth architect today.

*Life insurance policies are not investments and, accordingly, should not be purchased as an investment.