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A Savings Vehicle That Makes All the Difference

Missed Fortune – For Everyone Feeling the Bite of Higher Taxes

Posted on | February 2, 2013

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Tax Hikes Aren’t Just Hitting the Rich

We’ve just seen the first major tax increase in nearly 20 years for high-income earners. But everybody is feeling the bite of the expiration of the payroll tax cut on employee FICA and Medicare withholding. The rates jumped from 4.2% back up to 6.2%. This effectively means that most Americans will see a nearly 50% increase in the amount withheld from their checks for Social Security and Medicare.

There were also noticeable increases in capital gains and dividends for high-income earners like married couples that file jointly and earn over $70,000 annually. This also affected single earners making more than $35,000. The capital gains increased from 15% to 20%. And, finally, there was a phase out of the itemized deductions and the addition of a health care surtax of 3.5% that went into effect on all investment income.

This realization of higher taxes has prompted many Americans to take notice of what is happening and what can be done to immunize themselves from the effects of future tax increases.

Many of them are choosing to abandon the tax-deferred vehicles like IRAs and 401(k)s where they’ve been saving for their retirement and doing a strategic rollout that repositions their nest egg where it can accumulate tax-free.

People who have chosen to keep their retirement money in IRAs and 401(k)s will not have this luxury. This is because their money is being accumulated in a tax-deferred vehicle that will subject them to those anticipated rising tax rates the moment they begin taking their distributions. If this wasn’t enough, they’ll also be wrangling with the effects of rising inflation that is steadily shrinking the purchasing power of every dollar they’ve saved.

Immunity from the triple whammy of higher taxes, rising inflation and continuing economic uncertainty comes from learning and applying the right strategies and not simply following the herd.

This is where have chosen to use Maximum Funded Tax Advantaged (MFTA) Insurance contracts that have been part of the IRS code for generations. Your money grows tax-free and it transfers tax-free when you access it at retirement. Better still, it’s tax-free when it goes to your heirs at the end of your life.

For those hearing about this option for the first time, it’s natural to have some questions.

A Savings Vehicle That Makes All the Difference

A common objection for people who are not familiar with MFTA is that they’re not aware of it performing well as a retirement savings vehicle. Fair enough, here’s a simple question: In the last 12 years, did you triple your money tax-free?

In other words, if you had a $500,000 nest egg in your IRA or 401(k) 12 years ago, is it worth $1.5 million today? If the answer is “no” then it’s time to pay attention.

Because that’s the kind of growth that was accomplished in maximum funded insurance contracts.

There’s no shame in not knowing what you don’t know. But if what you always thought to be true turned out not to be true, how soon would you want to know about it? Most of us would say sooner than later.

If what you always thought to be the best way to save for your future, for your retirement, and for your kids’ college, turned out not to be the best way, when would you want to know? When would you want to know the best way?

Conversely, what if what you thought wasn’t the best way to save for your future turned out to be the best way?

There’s a reason that affluent people and banks and corporations put their tier 1 assets in Bank Owned Insurance Contracts and Corporate Owned Insurance Contracts. They maximum fund it and take the minimum death benefit for the tax-free accumulation and growth.

That is where many people doubled and tripled their money during the worst decade since the Great Depression while most people in America barely broke even with their money in mutual funds. According to DALBAR, most mutual fund investors have only averaged 3.49% during the past 20 years. Worse still, whatever money they did accumulate was taxable.

If you’re serious about taking control and eliminating the dangers of taxes, you need to understand what even many professionals do not.

If you’re ready to learn what they know, start by visiting with a Missed Fortune advisor.

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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