It’s not that you can’t earn a higher rate of return or that you can’t defer taxes and pay them later. In fact, it’s not even about market risk or how much you make. It’s all about the fact that YOU Deserve Better!
You’ve been told you can earn a 6.47% rate of return on a $100,000 annual investment over the next 4 years. And so, over the next 4 years you watch your $400,000 investment:
Great you’ve earned an 6.47% average rate of return, but you’ve lost $72,151! The lost money is bad enough, but the lost time can never be recovered. Your actual rate of return is really a negative. It’s -7.8%. YOU Deserve Better.
It is important for you to realize that interest earned is always more valuable than interest saved. Look at it this way. If you owe $20,000 at 12% and you pay the minimum payment on that debt, the total cost of that debt payoff will be $52,852 over the next 20 years! But you could have kept most of the extra over $30,000 that you paid on this debt if you’d ever been shown how. YOU Deserve Better.
You’ve been told that deferring taxes is the best thing you can do to save money. But did you know that contributing $5,500 a year over the course of 31 years, while you are working, will only defer $42,625 of income taxes if you are in a 25% tax bracket?
And when the time comes that the government forces you to take your Required Minimal Distributions (RMDs) from that tax deferred account, you will end up paying $46,208 in income taxes over 10 short years. YOU Deserve Better because
Shockingly, if you live 20 years after you start taking those RMDs, your income taxes will rise to be $96,556. And if you live 30 years after starting your RMDs, you will pay more than 3x the income tax ($139,588 compared to $42,625) than what you deferred during your entire 31 years of making contributions to your tax deferred account. YOU Deserve Better.
Finally, you have heard it said, “You can earn 12% over the next 30 years. Just buy this stock or this fund and sit back and watch it grow.” All you have to do is pay a nominal 2% fee for someone else to manage your money.
At first glance this pitch sounds like you will be earning 10% after you pay 2% of your profits to the money manager. But $100,000 @ 10% for 30 year produces $1,744,940 while $100,000 @ 12% with a 2% fee only yields $1,634,267.
YOU Deserve Better.
YOU Deserve Better because it’s your money.
YOU Deserve Better because you should never be misled about what deferring taxes will end up costing you.
YOU Deserve Better because taxes hurt and you should be shown how to avoid taxes that can be legally avoided instead of deferring them and letting them compound against you.
YOU Deserve Better because you work hard and should be able to depend on your savings to sustain you in the future.
At Life Benefits we are here to help you, because YOU Deserve Better!