Tax-Free Retirement Strategies

KEEPING UNCLE SAM OUT OF YOUR RETIREMENT SAVINGS

PROBLEMS THAT RETIREES FACE

  • Currently, the United States national debt stands at 17 Trillion Dollars, and is growing at a rate of about 4 Billion Dollars per day! That equals over $45,000 for every American citizen.
  • Social Security shortfalls – the Social Security Administration acknowledges that at some point the social security trust fund will be exhausted.
  • The aging American population and the new healthcare law will mean that more people will rely on government sponsored healthcare including medicare.
  • Inflation – the effects of inflation can destroy a retirement plan.
  • Taxes – Need we say more? The tax man wants your money!

WITH OUR NATION FACING THESE FINANCIAL PROBLEMS, DO YOU BELIEVE THAT TAXES WILL GO UP, GO DOWN, OR JUST STAY THE SAME?

I believe that when you look at these issues, and the need for more revenue that these problems have created, it can be said that Americans can expect that future tax rates will be MUCH HIGHER than they are now.

Taxable Money vs. Tax Deferred Money vs. TAX FREE Money

  • Taxable Money – Examples: ordinary income, capital gains (on investments, such as stocks, mutual funds, sale of real estate, sale of a business), etc.
  • Tax Deferred Money – you won’t pay taxes on these funds NOW or during accumulation, but you will pay taxes on it later when the funds are distributed – Examples: Tax-qualified plans like 401Ks, 403Bs, Traditional IRAs, etc.
  • Tax Free – you will NEVER pay taxes on this money. NO TAXES during the accumulation phase, and NO TAXES when the funds are distributed

Where would you like your money to be – TAX Deferred or TAX FREE? TAX FREE, of course!

You need to create a strategy to move your money from accounts that are FOREVER TAXED to accounts that are NEVER TAXED! You need to start turning taxable money and tax deferred money into TAX-FREE MONEY to protect that money from coming tax increases!

Americans have always been taught that investments (stocks, mutual funds, investment property, etc.), as well as Tax-Qualified retirement savings vehicles like 401Ks, 403Bs, SEP IRAs, Simple IRAs, etc, are great places to grow retirement savings.

But profits on investments are generally taxable as capital gains, and tax qualified plans, (401Ks, IRAs, etc.), do not avoid taxes, they simply delay (defer) taxes until distribution. By delaying the taxes, these plans compound future tax burdens, making the tax problem much worse, because we can expect higher tax rates in the future.

Johnson Financial Group would like to share with you a little-known strategy found in the IRS Tax Code that allows individuals and businesses to create a private, flexible, long-term savings accumulation plan. Funds in this type of plan grow tax-free, and distributions can be used for any purpose, (college planning, retirement, etc.).

And best of all, distributions are NOT TAXABLE – avoiding income and capital gains taxes! And, this strategy still allows you to participate in the market without being exposed to the downside of the market, and without the risk of loss of your principal!

Does it sound too good to be true? IT IS TRUE. Let us show you a strategy that will give you:

  • TAX-FREE GROWTH and ACCUMULATION along with TAX-FREE DISTRIBUTION
  • MARKET BASED GAINS with NO DOWNSIDE RISK
  • NO CONTRIBUTION LIMITS and NO PRE AGE 59 ½ WITHDRAWAL PENALTIES
  • TAX-FREE TRANSFERENCE to HEIRS while also providing protection and benefits for Critical Illness and Long-Term Care
  • An account that you can have in addition to any other qualified plans that you already have, EVEN IF you have already maxed out your contributions allowed by the IRS

Give us a call at 443-807-7311, and let’s schedule a free consultation, either in person or online. We will share with you some strategies that you won’t hear from your CPA, attorney, or financial advisor, but many people have successfully implemented these strategies to grow their long-term savings for college education planning, retirement planning, and other purposes, and receive those distributions TAX FREE.