We are very close to tax day here in the U.S. and I wanted to share an article with you:
“Biden Eyes First Major Tax Hike Since 1993 in Next Economic Plan”
Here is the link if you want to check it out:
For years I have been planning for the inevitable situation when Congress could be forced to raise taxes.
Now with the Executive Branch potentially being onboard, tax increases could come much faster.
Some people don’t seem to see the problem with higher taxes.
Some agree we need to tax more to help fund the new programs.
That definitely could make sense logically.
There might be a problem, however..
It’s the other programs that are increasing in cost, as well.
1. The interest on the debt
2. Social Security
For years former Comptroller of the US Government, David Walker, has been ringing the warning bells about this.(1)
So here’s the skinny.
If taxes do go up dramatically, it could seriously hurt you in the future if you are delaying all of your retirement assets in qualified plans.
Where you don’t pay the tax now.
But in the future.
It is very similar to the farmer and the seed.
One day a banker asked a farmer, would you rather pay tax now at a lower rate on a smaller portion of your seed?
Or in the future, on an entire crop at higher tax rates?
Once the farmer thought more about it…he chose the lower rate on a smaller portion of his seed.
This is a very difficult decision for someone to make.
Because no one wants to pay the tax today.
Think about it.
Taxes, along with other topics, are going to be an ongoing conversation moving forward for retirement plans.
Especially for those who could end up paying more times more in the future.
That’s why you might want to look at tax advantaged options for a portion of your assets.
Where you could pay the tax today.
And then possibly put a portion of those assets in a place where they could grow tax preferred.
And you could pull the money out tax advantaged in the future.
Tax Future problem avoided, under current tax laws.
This is part of the 5 Pay Strategy.
If rising taxes has got you worried, we might want to talk.
Simply respond to this email, and we can schedule a 15 chat over the phone to see if there might be a fit.
Remember — It’s Your Time…
(1) David McKnight: The Power of Zero