Tax free-retirement-easy-as-123
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A short history lesson about 401k plans in American. The PDF file also includes an interactive flash calculator on page three that shows how you can safely, have 200% or more spendable income in ...

A short history lesson about 401k plans in American. The PDF file also includes an interactive flash calculator on page three that shows how you can safely, have 200% or more spendable income in retirement, without any additional out of pocket savings required.

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Tax free-retirement-easy-as-123 Document Transcript

  • 1. Most People Believe Income Taxes We Can Increase Your Will Have To Go Up In The Future! Retirement Income by Let Us, Help You, Get The IRS Out Of Your Retirement Income! 25% to 40% or More! Wealth Maximization Utilizing Tax Favored Financial Concepts In the late 1980’s early 1990’s the first If it came to be, that not enough was 401K plans were rolled out in being contributed by the average corporate America. These plans were worker and the plan became what is mostly for the benefit of the highly called “Top Heavy” then the highly compensated employees, whose top end income tax rates were around 70% compensated workers would have theIt Is As Simple as! at the time. amount they could save on a tax favorable basis either reduced or The overall marketing of these returned if they already contributed. programs to the public was to incent people to save for retirement by They also received an adjusted W-2 allowing them to take a current tax or1099 for that year, for the additional deduction during their earning years earned income, that they were no and theoretically they would use the longer allowed to save/deduct. money in their retirement years and pay a lower tax on the money during Companies even set up matching fund retirement, when their incomes would programs to get people to save. An be lower and their tax brackets would example of this is where the company be lower as well. puts in an additional 3% of the In order for the highly compensated employee’s income if the employee employees to maximize the amount puts in 6% to get the average they could deduct and save, the employees to participate. Lately many companies had to include all of the companies whose profits haven’t held workers in the company. The lower paid employees, whose future income up have had to reduce or eliminate would be going up, along with their tax matching funds. brackets, also had to contribute a Some companies set up their plans in certain percentage of the overall contributions to the retirement plan or such way that required the employee to the highly compensated employees use some of their savings to purchase would not be able to participate fully. company stock in order to qualify for “For these low income employees, did the match. deferring paying lower taxes today, in “Worldcom and Enron did this and order to pay higher taxes later, make a ultimately left the employees with little lot of sense?” or nothing when they went bust.” Page 1
  • 2. Most People Believe Income Taxes We Can Increase Your Will Have To Go Up In The Future! Retirement Income by Let Us, Help You, Get The IRS Out Of Your Retirement Income! 25% to 40% or More! Wealth Maximization Utilizing Tax Favored Financial Concepts At the end of the day, a matching “There are a number of major employer contribution to a retirement corporations today whose 401K plan, if available, is one great gift from the employer to the employee, plans have a large percentage of if the employee actually ever gets to company stock.” use the money, regardless of what theIt Is As Simple as! underlying reasons for doing so by the In 2006 a law was passed that allowed employer. new employees to be automatically enrolled in the company’s 401K plan, As it turns out today, many people who unless the employee expressly said put money in these programs found they did not want to participate in that when they reached retirement and writing. By doing this, the company wanted to take the money out of these receives relief from some of the programs in retirement, they really government scrutiny and top-heavy weren’t in a much lower tax bracket testing. While they espouse that they but in many cases were in the same or are doing this in the best interest of the even a higher tax bracket. employee who is hesitant to start saving on their own, the bigger win is They are finding that when they take for the company’s highly compensated the money out of their tax deferred employees. Having more participants retirement plans they are paying more in the plan allows them to continue to in taxes than they would have paid had maximize their contributions. they taken the money initially. “May be just a subtle back door A couple of things also happened along way to get the “Average Joe” to the way to affect this: put money into the 401K.” Almost every tax deduction, except for home mortgage interest (a goal of While saving money and receiving many retirees is to have their home what are essentially free matching paid for, so that may be unavailable to funds is a great idea for the employee, them as well), has been done away this may be just a subtle back door way with. to get the “Average Joe” to put money into the 401K plans to keep them from “Almost every Tax becoming top-heavy or keep to the Deduction has been done government off of their back for away with!” potential compliance issues. Page 2
  • 3. Most People Believe Income Taxes We Can Increase Your Will Have To Go Up In The Future! Retirement Income by Let Us, Help You, Get The IRS Out Of Your Retirement Income! 25% to 40% or More! Wealth Maximization Utilizing Tax Favored Financial Concepts Their children have grown and moved Due to the time value of compound out (hopefully) and are no longer interest and some good years in the allowable as a tax deduction. market, the people that did save all of (remember, the dog doesn’t count) those years. They now have some kind The Taxation of a portion of your of an income, even though it may beIt Is As Simple as! Social Security benefits was added in taxable at higher rates than when they 1984. The ordinary income derived put it in the plan, they are probably still from these plans along with the feeling pretty good about it. reduction or loss of tax deductions can cause up to 85% of their social “In reality saving money in a security benefits to be taxed as well. poor investment still beats not The other issue is that most of us, including retirees have been hurt by saving money at all!” recent stock market turndowns. The If you managed to save some money income that many retirees planned on every year, even though the markets from the sales of stocks that would have been taxed at the lower Long have been up and down and the income Term Capital Gains rates (max 15% is taxable, you would probably have Federal plus State income taxes) has something to live on which is better been reduced or disappeared and they than nothing at all. have had to take more money from their 401K/IRA plans which are taxed Right Click on the Image Below and as ordinary income (maximum of 35% view it in full multi-media mode to see Federal income taxes plus State income how from this point forward, you can taxes). safely increase your retirement income Any income they would receive from by 25% to 40% or more! CD’s and Money Market funds is also taxed as ordinary income but even though the rates currently are low (under 2%), that income is still added in and will end up on your 1040. In spite of all this, the good news is, the “Average Joe” didn’t turn out to be so Average after all. Page 3
  • 4. Most People Believe Income Taxes We Can Increase Your Will Have To Go Up In The Future! Retirement Income by Let Us, Help You, Get The IRS Out Of Your Retirement Income! 25% to 40% or More! 0% Tax on Income with IUL Instead of saving your money in a tax trap, like a 401k, 403b, SEP, or IRA. We suggest that you save your money in a Indexed Universal Life insurance policy that has the minimum amount of insurance coverage required to meet the GuidelinesIt Is As Simple as! put out by Congress in the tax laws known as DEFRA, TEFRA, & TAMRA. By meeting these guidelines, you will be allowed to take income out of the policy on a Tax Free Basis. This is a New Generation, Life Insurance Product and Should NOT be confused with a traditional whole life insurance policy. 0% Downside Risk with Annual Reset Indexed Universal Life policies have a special feature called ANNUAL RESET. It only allows your money to either grow from year to year based on the growth of a stock market index or indexes of your choosing. In the worst case, if those indexes happened to have a down year, it just retains the same values from the beginning of the year The product is designed in such a manner that your money only goes up and it does not lose any money when the markets have down years. Your current qualified plans can lose money in the future just as they probably have done so repeatedly in the past. For More Information on How to increase your retirement income by 25% to 40% or more. Contact: Louis G. LaBash louis.labash@insurancechoices.biz Cell: 678-778-0544 Page 4