Don’t Outlive Your Income
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Have you recently lost a big amount of your retirement funds due to the economy?
Not sure where to safely place your retirement funds?
Do you want peace of mind knowing that your retirement funds are safe?
Please take some time to read some of the information we’ve provided for you that can be found in our free report that you can sign up for. Along with the free report you will receive videos, newsletters and other media to help you stay informed to protect your retirement funds.
Problems that could be depleting your retirement funds:
Problem #1: The Cost of Inflation
Inflation is eroding your spendable income.
Each year with inflation, the cost of health care, food, and almost everything else we need and want keeps getting more expensive. This is bad news for all of us and is especially bad news for the many retirees who are on a fixed income and have limited cash reserves.
Each year as everything gets more expensive, retirees will either have to cut back on their expenses and / or start taking more and more income. In many cases, this means they will eventually be forced to start depleting their cash reserves, and hope that their money will last until they die.
A simple inflation rate of 4% means that in 10 years, a retiree will need to spend almost 50% more in order to maintain their same standard of living. If they are currently living on $50,000 of income, they will need to increase it to $74,000. While we can’t stop prices from rising, there are some things you can do to make your money last longer.
But, you need to act now!
The obvious solution is to have your cash reserves grow faster than the inflation rate and your spending.
This can be achieved by strategically positioning assets, without sacrificing safety or guarantees.
Problem #2 The Cost of Income Taxes
Income Taxes are reducing the amount of income that you have to spend.
And they also reduce the growth of your investments!
Unfortunately, almost every penny we earn is subject to the bite of income taxes. If you need $10,000 of interest income and are in the 28% tax bracket and 6% for state tax, you will need to generate $15,000 in order to have $10,000 to spend. However, for many retirees it is worse than that. There is an additional 14% or more that is due. It is an indirect, hidden tax
Investment Income Can Make Up To 85% Of Your Social Security Income Taxable.
As you probably know, you are required to report all your interest income (even tax free income) on your Tax Return (1040a), even if you’re not using it. Your interest income is then combined with all your other income to determine if and how much of your Social Security Income is taxable.
Many retirees are paying income taxes on 50% to 85% of their Social Security check, when they could avoid it. If you want to see if you’re paying taxes on your Social Security, look at line 20b of your Tax Return (1040a).