May 1, 2013

 

 A ticking time bomb – Your IRAs and 401(k)!         

With the possible exception of home equity, the most valuable asset for most Americans is their retirement fund.  However, most people don’t know that the U.S. government has set its sights on pillaging the next BIG target – the low hanging fruit called your “retirement accounts”!  Currently, the U.S. government is working overtime in efforts to tax and control your retirement accounts.

Very significant changes have already occurred and still more are currently proposed which will have a tremendous negative impact your retirement assets….and your wealth!   The embedded income tax liability on retirement accounts is huge and will undoubtedly become even more crippling to savers in the future.  With nearly $21 Trillion currently held within retirement accounts, nearly 100% of which is taxable – the U.S. government is working overtime in efforts to tax and control your retirement accounts now!

Retirement accounts were created by Congress to encourage retirement savings and lessen the burden on the social security system.  Retirement accounts are not designed to serve as wealth transfer vehicles, nor the most efficient retirement income vehicles.  In fact, they are terrible “retirement income” and wealth transfer vehicles due the embedded income tax liabilities.  Without implementing the proper tax protection planning, it is not a matter of “if” or “could” a crippling “tax” event occur, only a matter of when – either during your lifetime, during the spousal transfer or during the beneficiary inheritance!  Without tax protection planning, your retirement accounts will suffer crippling losses due to income taxes!

Avoiding the issue or deferring the tax liability (not taking distributions until required by the IRS) does not make the problem go away!  It only gets worse!

 

 Is your retirement nest egg (and financial security) subject to extreme risk? 

You better believe it!!

Yes, times are changing!  There are immense political pressures to raise taxes – specifically income taxes.  Retirement accounts (this includes your IRAs, 401(k) and other employer plans) are in the cross hairs and subject to massive taxation risks in the future!  In fact, you might be shocked to learn that you may soon be considered one of those “rich folks” if you have indeed saved for retirement (did you know that nearly 85% of Americans currently have less than $25,000 in retirement saving!).

Saving for retirement is necessary to achieve financial security.  The real question is – “How do you effectively structure your retirement savings to provide you with the most tax efficient and sustainable retirement income during you lifetime as well as an effective wealth transfer to your heirs?”

The good news – extremely efficient and effective tax planning strategies are available today which can dramatically reduce your tax liability!  A properly devised plan provides for a more dependable, sustainable and tax efficient income during your lifetime and allows for an extremely tax efficient wealth transfer of those assets to your heirs. While generally reserved for persons with more than$200,000 in tax-advantaged retirement accounts,these plans are fast becoming an integral component of comprehensive retirement and estate plans.  

Whether you are still working and saving for retirement, or currently retired, the time for prudent planning is NOW!  Neglecting to implement proper capital preservation, asset protection and income tax planning strategies for retirement assets today will likely cripple retirement nest eggs and jeopardize financial security in the future!

Learn how significant tax and policy changes will affect you and what you can do about it now! 

Call me today with questions or more information! – (512) 346-6444.

Dan Johnson
President, DMJ & Associates
Certified Estate Planner
Retirement Specialist
 

Disclaimer:   Information contained in this material does not constitute legal advice.