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Missed Fortune – Optimizing Assets & Minimizing Taxes

Posted on | October 7, 2013

How the Current Budget Battle Affects You

The recent hoopla about deadlines, continuing resolutions, and government shutdowns, all stems from our government’s inability to formulate a budget. The debt ceiling has just recently been extended to $20 trillion and the old budget just keeps getting us deeper into debt.

The most recent fight has been over Republican efforts to exclude Obamacare from the budget. But, truth be told, it is impossible to balance the budget even without Obamacare.

The original cost of this legislation was estimated at $800-$900 billion, but now the Government Accountability Office is saying it will likely cost more than 3 times that amount.

So what does this all mean?

It means that every taxpayer in America is on the hook for nearly $170,000 for his or her share of the national debt. To put that into perspective, just 6 years ago, that amount was only $92,000. When factoring the additional costs of Obamacare, that amount will jump to nearly $230,000 per taxpayer.

The writing on the wall couldn’t be clearer: taxes will be going up one way or another. Another likely complication is the shrinking purchasing power of the dollar due to the ongoing printing of nearly $80 billion each month. These factors will contribute to continuing economic uncertainty for the foreseeable future.

But these challenges are not enough to prevent you from becoming empowered to reach the brighter future you envision.

There are times when it is advantageous to re-invent yourself. For instance, your at-retirement planning should be entirely different than what you did in your for-retirement planning.

Optimizing Assets While Minimizing Taxes

65% of retirees would like to include some type of work in their retirement. This is because they wish to remain necessary and to continue to have a positive impact on the world, even after reaching retirement.

They understand that, at retirement, financial peace of mind is nearly 6 times more important to them than wealth accumulation. To put it another way, people are not so concerned about making more money as they are about keeping what they’ve got.

Let’ say that “Bill” has accumulated around $500,000 in IRAs and 401(k)s. But, in following the crowd, he saw that nest egg lose about 40% of its value between the years 2000-2003. That took his savings down to around $300,000.

It took him until 2007 to make up for the ground he’d lost and then the market dropped hard in 2008. He lost $200,000 again. Now here he is 5 years later and he’s just barely back to where he was with $500,000.

Fortunately for Bill, he was introduced to Missed Fortune University. As a result of what he learned there, Bill has begun reinventing himself. He took that $500,000 in IRAs and he locked in an effective yield of 8.25% for the next five years so he has a predictable rate of return.

Bill is strategically getting his money out of his IRAs and 401(k)s where he will be taxed through the nose and into a tax-free retirement strategy. This is what’s known as a strategic roll out and at the end of five years, he’ll have successfully moved his entire $500,000 out of those tax-deferred vehicles and into ones where it can grow predictably and tax-free from then on.

Best of all, his money is no longer at risk in the market and when economic volatility occurs, he won’t lose a dime.

What is working for Bill has worked for thousands of others who have learned the strategies that helped them stop following the crowd and start moving toward a brighter future.

Learn how these strategies can work for you by visiting with a wealth architect today.

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

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