The IRS Is Your Silent Partner
Would you go into business with a silent partner who said that you could have 66% of the profits of the business unless he changed his mind?
Sounds crazy except you’ve already done it. The IRS gets at least 1/3 of your profits when you add up FICA/ Medicare, income taxes etc. If you own an IRA it’s even worse. In the US, we have what I call two tax systems: The voluntary tax and the involuntary tax. People continue to pay taxes voluntarily because of lack of planning. Involuntary taxes are the ones you pay because you have to.
The problem with tax deferred assets like 401k’s and IRA is that you only own 66% of the account. No matter what you do, you can’t get your hands on the IRS’s 33%. Try it and you’ll see. Either you pay it or your kids pay it. And the propaganda that time value of money is working for you is wrong – just do the math.
What if you could convert a taxable asset like and into a tax-free inheritance to your heirs? Sound too good to be true? We’ll its not. Its called wealth transference and its done using insurance and the transfer mechanism. Not just any insurance, but a specially designed policy that allows you to use your IRA while you may need it, but converts it into a tax free inheritance to your spouse or children.
For more information contact me at
david@lifepln.com
David Disraeli, Certified Financial Planner
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