It's Not How Much You Make, It's How Much You Keep


Let’s face it, most advisors focus on how much they are going to accumulate for you in your retirement account and as a result, they are taught how to get the best yield for you.  While that’s a good start, it’s not enough, especially in light of what’s likely going to happen to us down the road.


 The Day of Reckoning is not only coming, it’s just about upon us.  When I began working after college, they taught us that when our clients retired, they would be in a lower tax bracket.  So, the advice was to save in a qualified account, such as an IRA or 401(K), and reduce taxes while young, because in retirement when the money was to be withdrawn, the clients would be in a lower tax bracket. 

Looking back at history, some may remember that from 1944-1963 the highest tax rate was up at 90%.  In 1964, it went down to 77% and in 1982 to 50%.  A return to these rates may be in our future.  Some experts think that to properly service our National Debt, an effective tax rate of 85% would be required.

This is because due to our National Debt, the only way our government can service it is by: selling our bonds to foreign governments (like the Chinese, who have expressed concern over our ability to re-pay); print money (which would drive inflation) or ....... raise taxes.  So, what do you think is going to happen?

So, now you should understand that if you think you did “the right thing” and saved for your retirement in a qualified account, you’re going to pay taxes on those distributions (probably at the highest rates imaginable) at a time when you will no longer have any deductions.

If you knew there was a way to save for retirement and earn a competitive interest rate, tax deferred, linked to the stock market, but that would be available to you in retirement (or any time without penalty) on a TAX FREE basis, would that be worth 30 minutes of your time to learn about it? 


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Joseph Adelizzi

Admitted USTax Court, 1987

Cal. Ins. Lic. 0768932

IRS CAF No.: 036-45708R



Information Not Legal Advice. This article has been prepared for general information purposes only. The information in this article is not legal advice. Legal advice is dependent upon the specific circumstances of each situation. Also, the law may vary from state to state, so that some information in this article may not be correct for your jurisdiction. Finally, the information contained in this article is not guaranteed to be up to date. Therefore, the information contained in this article cannot replace the advice of competent legal counsel licensed in your state.

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Joe Adelizzi