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Missed Fortune – Empowering Your Authentic Wealth

Posted on | October 14, 2013

Getting Beyond the Reach of Indecision

Government shutdowns like the one we’ve been hearing so much about are not a new thing. We’ve had more than two dozen just in the past 30 years or so.

The most recent was prompted by a battle over a resolution to raise the debt ceiling to $20 trillion. This will effectively increase the amount of the national debt for which each taxpayer would bear responsibility by another $20,000-$30,000.

Every time this happens, the government will furlough “nonessential” government workers and services.

But this last time, 91% of IRS workers were furloughed. What should that tell us? Remember that president Obama hired another 30,000 additional IRS workers to maintain the appearance of creating jobs. Now here they go furloughing 85,000 workers.

Some of the other “nonessential” services that were affected include the EPA, which furloughed 93% of its workers, and the National Park Service. It’s almost as if they do this to see what, if any, impact it will have on America’s emotions. The ripple effect of these actions on certain businesses and industries is remarkable.

This indecision and irresponsibility can create a sense of needing to bow to whatever political demands are attached to the shutdown. The problem here is that, as a country, we simply cannot afford to continue funding many of the things that are being funded.

Despite the fact that government cannot seem to live within its means, you can still become empowered to arrive at the brighter future you’ve chosen.

Empowering Your Authentic Wealth

Consider the example of a couple that recently attended a 4-hour educational event and then followed it up with a 3-day clarity retreat. They then followed up with one of our wealth architects.

With what they were able to learn about optimizing their assets, minimizing taxes, and empowering their authentic wealth, they effectively tripled their net spendable retirement income.

This 60-year-old couple had about $300,000 in traditional savings like 401(k)s and IRAs that they had accumulated throughout their lifetimes. They’ve only been earning about 3.5% average over the last 20 years with an average of about 2% in the last 10 years.

Because of the volatility, they’ve been concerned about taxes going up. They’ve also been worried about inflation eroding away the purchasing power of their nest egg.

They also had roughly another $300,000 tied up in a piece of real estate that had them wondering what their best options might be.

We showed them how to liquidate their IRAs and they rolled them over into a very predictable, locked-in, effective yield for the next 5 years where they know they’ll be earning 6-7%. Even though money in IRAs is taxable, we’re strategizing to help them get that money out tax-free.

We’re rolling that money over and then rolling it out and then we’re going to offset much, if not all, of those taxes with the strategies that our wealth architects teach. On the other hand, they’re liquidating that real estate so the money that was tied up in this property can now be put to work earning a predictable income far in excess of any rental income. They no longer need to be landlords having to evict tenants and fix plumbing and the like.

Here’s the bottom line. $600,000 was going to net them, at best, only $400,000 after tax. That $400,000 has only been earning about 3 ½ to 4 percent after taxes for the past decade or so. At a 4% rate, that $400,000 would only have generated about $16,000 in annual retirement income. This is where this couple might have been after working their entire lives and accumulating a $600,000 nest egg.

Instead, we’ve shown them how to keep that entire $600,000; we’re getting it out tax-free effectively. We’ve locked in effective yields of 8.25% and it will be totally tax-free income in 5 years.

In 5 years they will be realizing $48,000 tax-free annual income for their golden years. That’s three times what they would have had to work with. And they don’t have to worry about outliving their money.

Are you ready to learn what this couple learned about empowering your authentic wealth? Visit with a wealth architect today and learn how.

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

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