• Tax Qualified Plan
  • IRA
  • 401(k)

The most common of all categories of investment money... The majority of people mistakenly skip #2 on our list and have their assets invested in tax qualified retirement accounts...(401(k)/IRA)  

Important to remember: Money invested in this type of account does not avoid tax, just delays tax, essentially compounding the amount due when finally withdrawn. 

Also, consider our national debt.  How are we going to pay this growing amount?

Generally, governments increase their revenue by spending less (not a good job at it so far) and/or raising taxes. (probable, given our historically low current tax rate) 

​So, given that tax rates will probably increase in the future, let me ask you, "Would you rather defer paying lower taxes now to pay a much more in taxes at a future date?"

Most, if not all, would say, "Pay Now."

3.  Tax Deferred Money

  • Municipal Bond
  • Roth Ira
  • Life Insurance

No taxes due on the income from the items in this category.  There are drawbacks...Municipal Bonds over time may not provide enough diversification or return to build a retirement nest egg.  Roth IRA's have participating and distribution limits.  Life insurance can work like the Roth without the age restrictions or contribution limits. (must use a properly structured life insurance plan)  the next best type of investment money...

2.  Tax Free Money

  • Includes gifts
  • Inheritance
  • Company match of retirement dollars

​​Sounds great!  The best type of money is Free... the more the better.  Be careful not to contribute more than your employer match or you might skip over the next best type of investment money...

1.  Free Money

The 4 Types of Money

The Truth About Your Money and Retirement

These concepts represent our current understanding of the law in general and are not to be considered legal or tax advice.  Income, estate, gift and generation skipping tax rules are subject to change at any time.  This is not an attempt to give legal or tax advice.  You should consult with your legal or tax adviser regarding your individual situation before making any tax related decisions.

  • Just about everything else is taxable
  • No tax breaks now or in the future

Simply put, there will be 2 pools of money available to us in retirement: Taxable and Tax-Free.

Which pool would you like to have your money in?

4.  Taxable Money

Tax Free Strategies

There are Tax-Free strategies available for most individuals. Some of the most beneficial are:

  • Tax Free Retirement for Business Owners
  • Tax Free Retirement for Physicians
  • Tax Free Retirement for Children and Grandchildren
  • Tax Free Retirement for High Income Earners
  • Tax Free Retirement for Everyone else contributing to a Tax Qualified Retirement Plan

Maximize your retirement income dollars.  Be more efficient... Plan now for your retirement income stream...

Learn Tax Free Strategies Today

Contact Lauffer & Associates for more information. (843) 637-2896