Zero-Tax Solutions

Tax-Free IconWe don't know anyone who wouldn't rather pay less in taxes, especially in retirement. Over the course of modern American history, income tax rates have been as high as 90% and as low as 35%. With trillions of dollars in national debt, and hundreds of billions of dollars needed each year for Social Security, Medicare, Medicaid, and other public programs, there is every reason to believe that income taxes can increase in the years ahead, not decrease.  Currently, we are in a period of historically low taxes, but there is a growing consensus that taxes must increase to cover Federal and State expenses and obligations. As the saying goes, nothing is certain but death and taxes. The "great unknown" is that we have no idea what tax rates will be in the future.

Most people are led to believe that they will transition into a lower tax bracket in retirement.  In our experience, that is rarely the case.  We often see our clients receive a raise in retirement as a result of a sound savings and investment strategy. If most, or all, of your savings are in IRAs and 401(k)s, the IRS will be able to tax 100% of your retirement income - at a future rate that we cannot predict - which can affect the taxation of your Social Security benefits, as well.  

We believe in diversification. Section 7702 in the Internal Revenue Code provides guidelines for what we call "Zero-Tax" investment solutions and strategies.  These savings and income strategies are available with or without access to the financial markets and can be structured to diversify your overall investment strategy.  Generally speaking, we think it's a good financial  strategy to limit your income tax liability wherever possible.  

We can develop a plan to manage your current and future tax obligations.  By taking advantage of tax-deductible and tax-deferred savings strategies, along with tax-free distribution strategies, we can help you limit the amount of income tax you may owe when you need to access your funds. Some of the areas where a Zero-Tax strategy may be appropriate include:

  • Helping to pay for college;
  • Providing retirement income;
  • Developing compensation plans for key employees; and
  • Transferring wealth.

There is much to discover about adding a Zero-Tax strategy to your diversified portfolio of assets. We can help determine if a Zero-Tax is appropriate for you based on your goals and circumstances.  If you would like to learn more about this and other topics, please contact us for a free in-person or telephone consultation at (855) 786-9584, option 1, or email us at admin@ptmwealth.com