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Retirement Planning: Stop Taking Deductions and Start Doing This

It isn’t what you make. It’s what you keep that matters. A penny saved is a government oversight, but the individual who understands the tax code the best keeps the most money.

And your CPA probably isn’t that person. Accountants are not trained to help you figure out which deductions apply to your situation. At the end of the day, you alone are responsible for what the CPA files as a tax return. Your CPA may not be able to save you money, but he can bleed you dry if he testifies against you in an audit. Never… ever… never hire a CPA directly.

Of course, the last thing you want is for the IRS to find you “cooking the books” or working in the gray area of the tax code. No, you don’t have risk being audited to save on taxes. Instead, it’s much easier and more effective to avoid taxable events altogether.

Let’s look at how a Traditional IRA or 401(k) gets taxed. Both of those structures deposit your money tax-free. Then, you are taxed at withdrawal during retirement. For example, if you earn $5,000 per month and you deposit $500 of that into your 401(k), the IRS can only tax you for $4,500 of earned income. The extra $500 goes straight from your employer’s account into your 401(k), tax-free. When you draw from your 401(k) in retirement, you are taxed as if you were still earning an income.

What’s wrong with this scenario?

To start with, we don’t know what tax rates are going to be in 10, 20, or 30 years. They could be less, the same, or more than 2015 tax rates. We don’t know. But if you had to take an educated guess based on an exploding Federal debt, what would you guess? If you guessed that taxes will be more 10-30 years from now, you’re probably right. Someone has to foot that bill, and it doesn’t make sense for Washington to wait to raise tax rates once Baby Boomers are no longer contributing their wealth, which makes up a significant part of income in the U.S. The younger, much smaller next generation of American workers simply doesn’t have the kind of “buying power” that can turn around the debt crisis.

Your Disappearing 401(k) Retirement Fund

The Curious Case Of Your Disappearing 401(k) Retirement Fund…

(And The 5-Word Solution To Make It “Re-appear”)

Disappearing 401k Harbor InstituteThe year was 2008 and for most people, who relied on their 401(k) as a source of their retirement nest egg, it was a terrible year.

Many people lost 30, 50, even 70% of their funds in one short period of time during this historic market crash.

We don’t want you to have to relive the past, of course.

Following the correct blueprint can help you avoid losing any part of your precious nest egg and protect your retirement fund.  Part of any reliable blueprint should also increase the chances of you multiplying the wealth inside your 401(k) fund.

But sometimes, even blueprints can leave critical details out.

How to follow the “perfect blueprint” and STILL lose part of your 401(k) fund?

You don’t want to make the mistake of checking boxes, selecting options, and then turning your 401(k) form in and then leave the rest to chance.

So what do you do?

It’s critical that your 401(k) gets updated at least twice a year to reflect changes in the current market.  But even then you can follow the perfect blueprint, and get all the information about the markets you want.

You’ll even make changes to your fund … only to hemorrhage money anyhow.

How does that happen?

By participating in a wealth system designed to make you poor.

The fact is: your IRA or 401(k) is a financial product. And just like any product in the market – from milk to a Lexus – there’s a price tag. And you may be paying much more than you’d expect – to fund your retirement.

Even worse, that “price tag” can’t be found anywhere on your monthly 401(k) statement.

The good news is we’ve found the person who can help you discover this price tag.

Who is it?  And how can you find this “hidden price tag”?

The 5 secret words to ask your broker, so you can quit paying “the hidden 401k price tag”…

The majority of account holders still don’t know they’re being charged this hidden price tag. And those who do don’t realize how big of an impact it’s making on their retirement.

If Ben Franklin were still around today, he might say that “nothing can be said to be certain, except death, taxes, and the hidden price tag on your retirement.

So what should you do if you don’t know the impact of this “price tag” on your 401(k)?

Here are 5 secret words that will force your plan administrator to spill their guts:

“I want a fee audit.”

This is the ONLY way to find out exactly what you’re paying to your broker. These fees are taken “off the top,” so you won’t find them on your monthly statement.  Now, you can reclaim them.

For more details, and to understand how to get the most out of your 401(k), get a copy of our related report by clicking the link in the box below.

Obviously, having the proper guidance and advice when it comes to protecting your retirement is a large and complex topic.

This article only represents a small sliver of the immense volume of tactics, strategies, and retirement-securing knowledge we offer our Members.

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