If offered a choice, most people would elect to pay no taxes when accessing funds in retirement. However, most people have not spent years (decades) funding a Roth IRA or Roth 401(k) and instead have focused on funding “tax-deferred” tools.
Answer the following question: Is it better to pay taxes on the harvest or the seed?
Or put another way, is it better to pay taxes NOW if the after-tax money can grow tax-free and be used tax-free in retirement?
The answer is, it depends. Depends on what? Your age, but generally speaking, if you are under the age of 55, paying taxes on the seed is much better than paying it on the harvest when in retirement.
What wealth-building tool allows money to grow tax-free and come out tax-free?
We call it Retirement Life™.
Retirement Life™ is a type of cash value life insurance policy that is designed for minimal expenses and maximum growth on premiums paid.
How do you learn about Retirement Life™?
Click here to contact our office and to receive a FREE copy of the the book Retiring Without Risk.