Tax Free Retirement Strategies
Most Individuals and Business Owners are trained to Pre Tax their monies into a Traditional IRA or 401(k).
However, there is little thought put into the Income Tax that will be paid on the IRA and 401(k) Distributions during retirement.
Everyone thinks that they are going to live in retirement at a lower tax bracket, but that rarely happens since you are not going to downsize your current lifestyle.
If your 401(k) or Traditional IRA is worth $100,000.00, you only own $80,000 of that money. The IRS owns the rest.
What if that 401(k) or Traditional IRA was worth $1 million dollars? The IRS owns $200,000 of your money thus reducing your spendable retirement income.
To make matters worse, Congress is in complete control of Income Tax Increases and thus, your Spendable Retirement Income. If Congress decides to raise Income tax just 10% , you just lost more of your Spendable Retirement Income in an instant.