Will Future Tax Rates Sabotage Your Lifestyle in Retirement?

According to the Employee Benefit Research Institute, approximately 42% of Americans in the private sector (i.e., non-government workers) are covered by a defined contribution plan such as a 401(k) or IRA. For many that contribute to these types of retirement plans, the primary benefits are the perceived tax savings Read More >

Are You Guilty of Tax Avoidance?

Proudly, I am! What is the difference between tax avoidance and tax evasion? About 10 years…in jail! There are many legitimate tax deductions and strategies that purposely exist in the tax code for our benefit. Many people refer to these as loopholes. I don’t like referring to tax deductions and strategies as Read More >

Is Postponing Tax Really the Best Idea?

Let’s say you wanted to borrow $10,000. What questions would you ask and want to know the answers to before you borrowed the money? I can think of at least two key questions, and probably more. What is the interest rate? How much interest do you have to pay? What is the payment? If the lender responded by Read More >

How Much of Your Qualified Plan Balance is Yours?

If you’re like most people who I ask that question, you said “All of it!” But is that true? Remember, you have elected to defer paying the tax. Let’s look at an example. Assume you are in a 30% tax bracket and you wish to make an annual contribution of $6,000 to your qualified plan. The best anyone could and should Read More >

What Do Qualified Plans Do?

Qualified plans do several things: They make it easy to save for retirement. They offer the opportunity to receive an employer match on your contributions. They defer otherwise payable income taxes. They defer the income tax calculation. Let’s evaluate each one individually. ⇒ Qualified plans make it Read More >