What Most Accountants and Financial Advisors Don’t Know
Tax Free contracts, structured correctly under tax citations and the Tax Equity Fiscal Responsibility Act of 1982, the Deficit Reduction Act of 1984, and the
Technical and Miscellaneous Act of 1988 are the key to tax-free retirement savings.
Few tax and financial advisors understand how to utilize these options. They may have heard these terms but do not grasp how to put them to work for their clients.
What does this mean to you?
Most likely, it means that you’re missing out on the best accumulation vehicle for retirement on the planet. This vehicle could give you double, sometimes triple, the net spendable income in retirement than a traditional IRA or 401(k) can provide.
Since the 1986 Tax Reform Act, there are three types of income that are subject to taxation. They are earned income, passive income, and portfolio income.
Most accountants roll their eyes upon hearing this because they’re familiar with these designations. When we inform them that the people we coach have income in retirement that does not fall under one of those three categories, their eyes get wide.
When those accountants ask what kind of income doesn’t fall under one of those three categories, we explain the above mentioned sections of the IRS code.
These accountants may have heard of those sections of code but they never understood them until that moment.
It’s not likely that they, or other financial advisors, would be willing to recommend something that they do not understand. It’s often easier for them to just encourage their clients to keep following the herd with tax-deferred plans.
If your advisors knew something that could double or triple your net spendable income and make you immune from taxes, wouldn’t you want them to tell you?
If there was a better way to build a tax-free retirement nest egg that enjoyed liquidity, safety of principal, and a predictable rate of return, how soon would you want to know?
People who continue to follow the herd by continuing to save for the future in a tax-deferred vehicle are setting themselves up for a rude awakening.
But you don’t have to join them.