Missed Fortune Super Blog

A Savings Vehicle That Makes All the Difference

Missed Fortune – How Long Will Your Nest Egg Last?

Posted on | November 3, 2009

When it comes to your retirement money, we’ve recently talked about why it’s far better to accumulate your money tax-free, versus taxed-as-earned.

We’ve illustrated how $1 dollar doubling every period for 20 periods becomes $1 million if it grows tax-free — but if it accumulates taxed-as-earned you only reach to $72,000 in a 25% marginal tax bracket after 20 periods, or worse, $27,000 in a 33% marginal tax bracket (which many Americans find themselves in with federal and state income tax combined).

This proves why it’s critical to take advantage of one of the three miracles of wealth accumulation: tax-favored accumulation that keeps your principal safe.

You deserve to have your retirement dollars safe, and you deserve to have them accumulating the most interest possible, without the drain of taxes. There’s something else you deserve — to withdraw your money tax-free.

Here’s why:

nestegg copy 300x278 Missed Fortune   How Long Will Your Nest Egg Last?Let’s say you have accumulated a $1 million nest egg, and you would like to live on $100,000 a year to enjoy a comfortable retirement.

If your retirement dollars are taxed upon withdrawal (as they are with most traditional plans), you would have to withdraw $150,000 a year to net $100,000.

That’s right, if you’re like most Americans in a 33% marginal tax bracket, you would have to pull out $150,000 and pay about one-third of it on taxes to live on $100,000 a year.

Do you know how long your $1 million nest egg would last under these circumstances?

Get ready — just 11 years. Wouldn’t you rather have the peace of mind knowing that you can enjoy your retirement income for as long as you live, whether that’s until your 60s, 70s, 80s, 90s or beyond?

What about when you pass away? Did you know that the average IRA and 401(k) is only worth about $.22 to $.28 on the dollar as it passes on to heirs? Wouldn’t you rather have 100-cent dollars to pass along?

There is just one retirement savings vehicle that:

  1. Accumulates tax-free
  2. Can be withdrawn tax-free (even before age 59 ½ – without penalty)
  3. Transfers to your heirs tax-free when you pass away

Find out how to grow and protect your retirement money so you can maximize your future.

Isn’t it time you became wealthy?

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

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