Tax
Favored
Retirement
Plan
Tax Diversified Planning
My Financial Advisor never told me about this!
Most financial advisors are too busy selling one product or one vendor and therefore are not aware of these types of tax-favored strategies.
Most advisors do not understand the intricate tax codes associated with or the process to ensure the strategies remain legally tax-favored producing TAX-FREE CASHFLOW.
This results in less than 1 in 10 Americans that are aware or have been exposed to these types of strategies.
Chaos in the economy and work environment in 2020 has driven a mass number of Americans to adopt these strategies, citing the potential extreme change in tax rates as the primary reason.
We are seeing growing numbers of American repositioning contributions from what were once the premiere retirement vehicles, the 401(k), 403(b) and IRA, to these or other tax-deferred vehicles.
The downside of 401(k), 403(b) and IRA’s
You will be required to pay taxes:
You have a partner in these accounts. This is the worst type of partner, a partner in which you do not what percentage they will take when the time comes. You owe taxes on all of these accounts when you make withdraws. The amount of tax you pay will be dictated by two
You are required to report the earnings and income to the IRS:
All the money in these accounts are on Uncle Sam’s radar. To the point that at a certain age (currently 72) you are REQUIRED to make withdraws to pay the appropriate tax to Uncle Sam.
Your funds are NOT guaranteed:
There is typically no protection from market loss. The funds in these types of accounts will earn or lose based on the type of investments held within the account.
Your money is not liquid:
Should you wish to make a withdrawal prior to age 59 ½, you are penalized in addition to having to pay taxes.
Contribution limits:
Each of the plans above have specific contribution limits.
With Tax-Favored Planning
- You won’t pay taxes on growth or principal: If your plan is structured properly, this is 100% legal, and in compliance with IRS tax code.
- Earn a fair and reasonable rate of return: These structures are designed to provide a savings mechanism that is for the long haul. This is not unreasonable to say you have the ability to earn some to most of what the market returns without any of the risk. Historical returns have been in the 2 to 5 times that of inflation range, depending on the clients’ specific allocations, objectives, and time horizons. *Past performance is not an indicator of future performance, each strategy is customized to the client’s needs.
- Your interest rate is guaranteed: (Money grows at the same yearly rate as when you opened your account— even if the market crashes).
- Your money is Liquid: (All money put into and made in your account is cash—you can withdraw any amount—at any time—without penalty).
- You are not required to report earnings to the IRS (The IRS doesn’t classify income as “income” inside this kind of account. Not Uncle Sam’s Business.)
Too Good To Be True?
Nope. It’s very real.
In fact, an Account like a TFRA is not a new investment strategy. Accounts like these have been used by wealthy individuals and families for centuries. They take years to build, then pass on fortunes in a legally tax-free environment.
President John F. Kennedy had an account like this. So did Presidents Taft, Cleveland, McKinley, Harding, and FDR (FDR, in fact, held a large portion of his estate—$562,142 or over $7 million in today's dollars—inside his account...)
Even John McCain used his account to fund his electoral campaign back in '08.