Health & Fitness
Higher Taxes on the Horizon: Protect Your Savings NOW!
Joe Lucey discusses how higher taxes and inflation can significantly reduce retirement savings and what you can do now to protect your nest egg.
Lately, I've become pretty concerned about what's happening to the overall American economy. If just half of what I'm seeing comes to fruition, retirees throughout the country will end up paying heavily.
So what am I talking about?
· Our government is acting as though they are working hard to reduce the deficit, but when you dive into the numbers, you find both sides of the aisle are only touching the surface.
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· Additionally, Standard & Poor’s announced that they have lowered the credit rating of US bonds. This means that many companies would be considered a better risk, more likely to pay back what they've borrowed, than our government.
· Tax rates are almost certain to increase.
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· Inflation is already at 10% if we simply measured it the way we used to.
So why does this bode so poorly for retirees? It all boils down to a financially detrimental combination of increased taxation with inflation and low interest rates.
Many retirees hold a large chunk of retirement assets inside IRAs. This is money that has never been taxed. When tax rates go up, the net value of your retirement plans goes down. When you combine inflation to a reduced nest egg, you end up with an ugly outcome.
I believe we are living in the last couple years of low tax rates. I can see tax rates increasing significantly down the road for all of us. Increased tax rates immediately reduce the net value of our retirement plans. Now is the time to take advantage of low tax rates to .
You can invest in such a way to fight inflation. But the only way to fight increased taxation is to convert to Tax-Free.
The clock is ticking.
This is just one example of the good financial strategies that are available to you when you partner with a knowledgeable professional like those at Secured Retirement Advisors. In order to help you, we have recently updated our website and now offer many FREE downloadable resources which can help answer many retirement questions. Feel free to visit us at www.securedretirements.com and help yourself to our educational materials. If you would like a complementary “3 Step Review” of your own retirement plan, call Secured Retirement Advisors at 952-460-3260.