Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement Vehicles and Taxes...
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Transcript of Seeking A Tax-Free Retirement Educational Workshop A Discussion of Retirement Vehicles and Taxes...
Seeking A Tax-Free Retirement Educational WorkshopA Discussion of Retirement Vehicles and Taxes
Making The Most of Your Retirement Dollars
Presented By:Todd Ensing
©2009 Tax Free Retirement, Inc. Used by permission License #10011
TC49238(0508)
• $11,273,059,048,264.84 – “Official” US Debt as of 5/12/091
• $9,381,368,108,595.10 – “Official” US Debt as of 3/6/081
• 1.9 trillion “Official” increase in 14 months
• Real National Debt is $61,173,829,000,000.002
- What’s the difference between the “Real” and “Official”?
• Your share of the real US debt is: $200,000.002
Facts About National Debt1
1. US National Debt Clock www.brilling.com/debt_clock
2. Truth in 2008 http://www.truthin2008.org/
1. Social Security Administration sample statement from www.ssa.gov
Facts About National Debt1
1. Spend Less2. Tax More
There are only two ways to combat the growing debt…
Are we spending less as a government?
We are spending more than we ever have in the
history of our country.
So the only solution seems to be…
Higher TAXES
History of Federal Individual IncomeTop Marginal Tax Rates
Source: truthandpolitics.org, referencing IRS Statistics of Income Bulletin Pub 1136
1. Free Money- Inherited - Matching 401(k) Money
2. Tax-Free Money
3. Taxed Deferred Money
4. Taxable Money
Smart Retirement Money Order
1. Free Money
2. Tax-Free Money- Roth IRA- Life Insurance Cash Value*
3. Taxed Deferred Money
4. Taxable Money
Smart Retirement Money Order
*Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy's cash value in early years.
1. Free Money
2. Tax-Free Money
3. Taxed Deferred Money- Annuities- Tax-Qualified Plans such as
401(k), IRA, etc.
4. Taxable Money
Smart Retirement Money Order
Smart Retirement Money Order
1. Free Money
2. Tax-Free Money
3. Taxed Deferred Money
4. Taxable Money– Wages– Capital Gains– 1099 Interest
Smart Retirement Money Order
1. Free Money
2. Tax-Free Money
3. Taxed Deferred Money
4. Taxable Money
Any contribution above the match of your 401(k) becomes tax-
deferred money, and skips over #2 completely.
Let’s take a look at the difference between a Tax-Deferred plan
and a Tax-Free plan.
Would you rather pay tax on this…
Traditional IRA
Tax-deferred
0 Tax on Deposits
Tax Deferre
d Growth
Roth IRA
Tax Free
After-Tax
Deposits
Example
Tax Deferre
d Growth
Taxed AsOrdinary Income On Withdrawal
$0 Federal Tax For QualifiedDistributions
Or this?
Traditional IRA
Tax-deferred
0 Tax on Deposits
Tax Deferre
d Growth
Roth IRA
Tax Free
After-Tax
Deposits
Example
Tax Deferre
d Growth
Taxed AsOrdinary Income On Withdrawal
$0 Federal Tax For QualifiedDistributions
When you put your money into an IRA or 401(k) are you
really saving tax?
No. Simply delaying tax - which actually compounds
the tax problem.
If you were a farmer would you rather pay tax on the seed…
or the harvest?
How It Works with Universal Life Insurance
Premium$
- fees
UL Life Insurance Policy
$MinimumCompanyRequires
Maximum IRS Allows
Death Benefit
What’s Best for You?
Roth IRA?
What’s Best for You?
Universal Life Insurance?
What’s Best for You?
Both?
Next Steps