Could being successful actually hurt your retirement plan? Saving a lot of money is not always the key to a great retirement. Having a great plan, now that is something to work with.
“Will you be in a lower tax bracket after retirement”?
Investing the Right Amount
You know, that’s the belief of many people that as your working you should put as much into your 401K or as much into your IRA now while you’re working in the hope that once you retire, you will be in a lower tax bracket and those dollars coming back will mean something to you.
After 38 years of experience in working with people preparing for retirement, here is what I have found about many of these people.
If they are successful, and many people are in saving for retirement, they wind up with a lot of money, in fact many times way too much money that they’ve put into their 401K’s and IRA’s.
And when they reach mandatory distribution age that happens after your 70 years old. Those distributions come back many times pushing them into higher and higher tax brackets. And they realize, that was just a delusion that they believed all those years.It was because they were successful that they did not end up in a lower tax bracket.
True Tax Free Retirement
We help people establish retirement plans to where they do not pay taxes on their money when they take their distributions. And that’s about as good as it gets.
If you can receive your retirement money without any taxation, if it were truly tax free, then you wouldn’t be concerned with what tax bracket you were in retirement. So I would encourage you, think about that question, “will you really be in a lower tax bracket after retirement”?
Finding the answers
I created twenty videos responding to the most important questions that people ask me about their money, their financing, their investment, and their retirement plans.
If you’d like to know the answer to these questions, sign up and we will send you, as a free gift, these twenty videos responding to these most important questions.