The majority of Americans are socking #money into #retirement plans that postpone #taxes, a really poor choice and bad bet. Across the board, people are retiring with more income and/or lower deductions, and it’s truly killing their retirement income. Here’s why.
During your working years you have a lot of things to potentially keep your tax bracket down. The mortgage interest #deduction, student loan interest deduction, #exemptions for children, and lower income in earlier stages of your career.
It’s likely #inflation alone will bump you into a higher tax #bracket, but especially when you take away deductions and exemptions, leaving nothing to offset increased income. This is exactly what CPA’s are seeing for many Americans. And the more successful you have been, the more you lose.
Last but not least, it’s clear that the government needs, and is seeking, more revenue. The combination of high spending, high national debt, and some of the lowest tax brackets in history could be a possible indicator of increasing taxes. As of right now, some of those increases have already taken place.
I hesitate to make a blanket statement here, knowing every situation is unique, but consider the benefits of retiring tax-free. There is #peace in not having to #worry about what tax bracket the future holds. Chances are you’ll save on taxes and you’ll sleep better at night. Taxes are not going down so maybe it’s time to rethink your tax plan.
That’s why a tax-free retirement is a breath of fresh air. Let’s talk about a plan for you so that you can enjoy your retirement. After all, you worked hard to get there.
Adrienne Gottlieb, J.D.