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Missed Fortune – You’re Being Penalized for Saving, Investing, & Staying Healthy

Posted on | April 18, 2010

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Government Penalties for Healthy Behavior

We recently passed Tax Freedom Day, the day the commemorates how long you work for the government before being able to enjoy the fruits of your own labor.

Did you know that Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined?

And as William La Jeunesse reported:

“When you combine the public debt — the amount we owe China and other nations — with our intragovernmental debt — what we owe social security — the interest alone is $383 billion. That’s more than what we spend on energy, agriculture, homeland security, education and almost every other government agency combined.”

We live in a great country and we should all pay our fair share to keep our nation strong and vibrant. Unfortunately, however, many people pay far more than their fair share.

What’s worse than how much we all pay in taxes is the fact that government policies penalize healthy habits and behavior.

For example, in a New York Times article by Roni Karyn Rabin entitled “Could Health Overhaul Incentives Hurt Some?,” Helen Darling, president of the National Business Group on Health, says,

“Right now, the employees who are healthy and living a healthy lifestyle are paying for those who are not. They are overpaying almost twice as much for the unhealthy: the obese, the smokers, people like that. You, an employee who is healthy and doesn’t smoke, are subsidizing the medical claims, with your premiums going up every month, to pay for someone who smokes, for someone who is obese.”

By 2020, 90 percent of all federal tax revenue will be allocated just to servicing the national debt and deficit, and most Americans will be paying 50 percent of their income in taxes.

Currently, 55 percent of Americans pay more in taxes than they receive in social benefits, and the remaining 45% receive more benefits than they pay in taxes.

This ratio is only going to get worse — we’ll continue penalizing the producers to support consumers.

Such a system disincentivizes saving, investing, maintaining physical health, and other behavior.

Play Good Offense With Your Personal Finances

It’s been said that the best defense is a good offense. With the government constantly attacking your hard-earned wealth, this holds true for your personal finances.

Rather than waiting for the government to rob your production and then playing defense with your CPA, you need to take a more proactive approach.

You need to put your serious cash in vehicles that give you the following benefits:

  1. Tax-free growth, tax-free withdrawal, and tax-free transfer to heirs.
  2. Penalty-free liquidity.
  3. Safety of principal.
  4. A healthy rate of return that outpaces inflation.

Schedule a free consultation with a Missed Fortune advisor today to jump-start your personal finance offense.

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

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