Become Tax Free in 3

When I hold a work shop one of the first questions I ask the group is:

Where do you believe future income taxes will be by a raise of hands?

1. Lower

2. Same

3. Higher

In every case guess when all the hands shoot up into the air? That’s right; each time I ask 100% of the group think future tax rates will be higher. Why?

There are a lot of reasons to think future income taxes rate will be higher:

1. USA Today calculated in May of 2007 that American tax payers are on the hook for 59.1 Trillion dollars* in liabilities – this is before the recent financial meltdown and bailout package
2. There are 78 Million Baby Boomers retiring in the coming years
3. New government spending plans
   

Some experts believe the current highest marginal tax bracket of 35% might go as high as 60% in the near future. What does this mean to the population that has recently retired or will be retiring in the next 5 to 20 years? That the after tax value of your retirement income is in jeopardy of being significantly eroded by higher taxes.

How can you prepare your nest egg from this impending decline in spending power?
One solution is to move as much of your tax deferred retirement accounts into tax free accounts as soon as possible.

There currently exists a three year window of opportunity to transform your deferred retirement (401(k)/ IRA) accounts into tax free accounts. This window closes by the end of 2010 under current tax law!

It is very important to act immediately and ascertain if you are in a position to take advantage of this opportunity. Call us today to learn more and schedule an appointment to begin the process of protecting your future income.

Excerpt from USA Today Article pre-market melt down

*”…Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.
Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
This hidden debt is the amount taxpayers would have to pay immediately to cover government's financial obligations. Like a mortgage, it will cost more to repay the debt over time. Every U.S. household would have to pay about $31,000 a year to do so in 75 years….” 5/29/2007 -- By Dennis Cauchon, USA TODAY