Discover the advantages of a truly diversified strategic retirement plan to help you reduce taxes and fees, eliminate stock market volatility, and leave a legacy with Lifeline Innovations & Insurance Solutions. Learn more.
Pumpkins? Imagine for a moment that you're a pumpkin farmer. It's early spring, and it's time to buy seeds for this year's crop.
You go to your local seed store and select the best pumpkin seeds that money can buy. When you're ready to pay for your seeds, the proprietor asks you how you would like to pay your tax.
What? A choice in how you pay your tax?
He explains.... You can choose to pay your tax as a percentage of the price of the seeds today. OR, you can agree to pay your tax as a percentage of your harvest - a tax on each and every pumpkin you sell, at a rate to be determined later.
You think about it.... you could have a bad year, burdened with drought, and not have very many pumpkins to sell, which would make for a small tax on the harvest - maybe less than the tax on the seeds today. OR, you could have a great year with an abundant harvest. In that case, your tax could be many times the small amount of tax due now... but you won't know the tax rate until your crop is already harvested.
Since you're an expert pumpkin farmer and you have an optimistic outlook, you decide that it's better to pay the small tax that you know NOW instead of having a potentially large (but unknown) tax later.
Congratulations! Now you understand your choice of a taxable versus a tax-FREE retirement income!
Of course, we DON'T advocate that you NEVER pay taxes! We teach you how to pay your taxes strategically - now at the current historically low rates on the smaller amount - your contributions (the seeds), not the harvest!
Many people save for their retirement on a tax-deferred basis - mostly in a traditional 401(k), 403(b), or IRA. That means that they get a tax write-off for their contribution today when the tax rate is low and, as their contributions accumulate over the years, they pay no taxes. Then they must pay taxes on EVERY penny they withdraw from their plan. All of these plans have Required Minimum Distributions (RMDs), which means that Uncle Sam makes sure that he gets tax revenue from these plans year after year, until you pass on or your money runs out.
Instead of trading small tax savings now for a BIG tax bill later, we propose that you pay your taxes now at historically low rates. Then your money can work hard for you and grow in a tax-free environment. The BEST part is that, when these plans are PROPERLY STRUCTURED, you'll pay NO taxes EVER on the income that you receive later.
Click HERE to contact us for more information on how this can work for you!