As people accumulate wealth the #1 asked question I receive is "where should I put my money"? My question back is where do you think taxes are going in the future? The majority of the time the answer I hear is "up". The place most people are putting their money currently is in qualified plans which means they are investing pretax into retirement accounts that will be taxed sometime in the future. Most clients believe they will be in a lower tax bracket in the future even though they believe taxes will be going up during their retirement years.
The government will have 100% control on what they want to tax on these accounts in the future. Trillions and counting are in retirement accounts vs Trillions of debt and counting.....I wonder where the government will get money from when the social security system cracks or they need to handle the debt issue. How can you put so much control in our government hands when the tax code changes consistently? The problem is if you saved properly in a retirement accounts along with having the least deductions in retirement (home interest, kids for exemptions etc.) you have actually set yourself up to pay more tax in the future. Understanding not paying taxes on your money sounds like a great idea you are actually compounding your tax burden and putting heavy risk on your wealth. YOU ARE BUILDING A TAX BOMB!
Have you ever wondered if you should structure your savings in accounts based on taxes that could go up and planning to have less taxable income vs tax free income during retirement? We can save you hundreds of thousands of dollars in tax strategies......
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