|
Most Americans are lured into saving for retirement with traditional qualified retirement plans, such as IRAs and 401(k)s. They are convinced by financial advisors to contribute pre-tax dollars to 401(k) plans or place tax-deductible contributions into IRAs because of the tax advantages during the contribution and accumulation phases of their retirement planning. They seem to ignore the two most important phases – when you withdraw your money for retirement income, and when you pass away and transfer any remaining funds to your heirs. One of the original IRA tenets held that deferring tax until retirement was advantageous because funds would likely be taxed at a lower rate. That is no longer axiomatic. In fact, with the coming election, I believe the writing is on the wall that effective tax rates will likely be higher in the future than they are today and you may well live out your retirement in the same or higher tax bracket if you accumulate a respectable retirement nest egg. As a financial strategist and retirement specialist, when I discover how much money my first-time clients have accumulated in yet-to-be taxed IRAs and 401(k)s, I often ask them, “Are you planning your retirement or Uncle Sam’s?”
As many people approach retirement , they find themselves with a free and clear home. So, they no longer have the mortgage interest expense deductions. Their children have matured into adults, so they can no longer claim them as dependents. And they are no longer contributing to tax-deductible retirement plans, which once also sheltered earned income. Thus, in retirement they find themselves in as high or higher tax bracket as they were during their earning years even if they have lower income.
There is a means by which you can draw out your retirement free of income tax and capital gains tax. Not only that, but there is also a means to avoid paying tax on up to 85 percent of your Social Security benefits at retirement. Are you interested in how you can accomplish this? I have helped numerous clients substantially reduce or totally eliminate paying tax on up to $60,000 per year of withdrawals from their IRAs or 401(k)s. The key is to not wait until age 70 1/2. Begin now! If you are over age 59 1 /2 with money trapped in IRAs and 401k’s - especially if you don’t need the income yet – don’t wait any longer thinking that postponing tax is saving you money. Postponing or “stretching out” your contributions will likely increase your tax liability. Employing these methods I have helped retirees increase their net spendable retirement income by as much as 50 percent.
Co-Host of KRLA’s 870AM Straight Talk Real Estate, Mr. Weide is President of TAX-FREE Benefit Specialists & Insurance Services, a corporate benefits firm in Glendale, dedicated to bringing Fortune 500 tax & retirement saving strategies to business & home owners. He has authored the popular booklet Getting Rid of Taxes in Business & Retirement and is a frequent Guest Editorialist for The San Fernando Valley Business Journal. Click here to download the event flier. Get This Free Booklet at the Seminar
Register Now for the Seminar To register now for the seminar, simply fill out the form below, or call us at (818) 249-7249.
|
Additionally, many people who have built wealth in investment real estate come to learn that while they may well be worth millions on paper in real estate equity, they can not comfortably live in retirement on rents and positive cash flow alone. Yet, trying to tap into their principal by selling their properties becomes terribly disadvantaged because Capital Gains Tax (also likely to climb soon) will ravage their returns.
To learn how to successfully transfer up to $600,000 ($60,000/yr for 10 years) out of your IRAs or 401(k)s, between age 59 1/2 and age 70 1/2 with no tax consequence, TAX-FREE Benefit Specialists is conducting an educational seminar entitled “Taking Income from Your Qualified Plan With No Taxable Consequence.”
Bruce M. Weide: Your Seminar Presenter
|
|