Check the last 80 years of tax history, then picture how do you see yourself in the future? Do you see yourself poor or rich? This can help you decide between ROTH or Traditional Concepts when planning for retirement.
The button below will open a chart to illustrate 80 years of taxes in one page, read between the lines and you will notice how wars, recessions, depressions, and politics, have contributed big time to the raise of taxes in the past. Based on current events we probably won’t be able to see lower taxes in a near future.
Could this be the reason why many people considered ROTH concepts as “The Miracle Products”?
Roth concepts allow you to pay taxes on your retirement contribution now, at your current low tax rates, compared to the last 80 years average of more than 60%, they also provide you with the benefits of tax free growth, and tax free distribution in retirement.
In other words Roth concepts can help you avoid having a joint account with the IRS. In traditional IRA’s “Uncle Sam” reserves that right to increase his share of taxes at any time. All they need to do is to increase the marginal tax rates just when you are about to retire to create an I wish I had scenario for you.
Any tax deductible account such as Traditional 401Ks, or Traditional IRAs could become vulnerable to the impact of higher tax rates at times of distribution.
For those who are aiming high in life and are working to have high income in retirement, if you plan to have your house paid in full, your children financially independent and out of the house, without many tax deductions you may want to consider creating some TAX FREE buckets of money for your retirement.
If this makes any sense and you would like to learn more about your options, please feel free to schedule a no cost educational meeting.
Just send us an e-mail or simply call us at (703) 904-1000
We Are Proud To Serve.
This information does not intend to be an investment, legal, nor tax advice, in our opinion tax deductible plans are great for those who expecting to be in a lower tax bracket during retirement. Our goal is to help our clients to be in a high tax bracket but with a large amount of non-taxable income.