The Tax Advantages of a Crash Proof Retirement

Crash Proof Retirement: Taxes Due

1-800-722-9728 • Crash Proof Retirement • info@firstseniorfinancialgroup.com

By Phil Cannella, Creator of the Crash Proof Retirement System

Historically speaking, we are enjoying one of the lowest tax levels this country has seen in the last 70 years. At their highest point, in the last years of World War II, the top federal tax bracket was 94%. Imagine getting to keep only 6% of what you made! Even then you would be lucky to keep that much, for state taxes may well have gobbled up the remainder.

During the 1960s and 1970s, the top tax bracket was as high as 70%. It was not until recently that we hit some of the lowest tax levels we’ve seen in a very long time at 35%. However, beginning January 1st 2013, tax levels began to rise again, with the top bracket going up to 39.6%.

What does this have to do with your retirement? Everything! Consider the fact that the U.S. government is letting the national debt spiral out of control. In order to contain the deficit this country runs year in and year out, only two options are possible: 1) Cut spending; 2) Raise taxes.

As spending cuts appear to be out of the question (our political parties cannot agree upon what to cut, and no politician wants to cut entitlement programs as that would mean their constituents won’t re-elect them) the only answer is to raise taxes.

Next, consider the fact that some 18 trillion dollars are sitting in retirement accounts, most of which has never been taxed. IRAs, 401(k)s, 403(b)s and similar retirement accounts have enjoyed tax-deferred benefits of having contributions all these years. But the day of reckoning comes when one reaches the age of 70 ½ and required minimum distributions become the law. Then you have to pay the taxman at whatever the current tax rate might be. With the way things are shaping up in this country, more than likely the tax bill be higher than it is today.

Crash Proof Retirement considers these factors and looks at options you may have so that you can keep as much of your hard-earned money for yourself and out of the hands of the greedy IRS. When it comes to your retirement, the Crash Proof Retirement team works to accomplish the greatest gain possible for you so that you can enjoy your nest egg.