4 Reasons to Consider Paying Taxes Now & Not Later in Retirement

(don’t forget to checkout the video of this blog too)

Pay taxes now, or pay taxes later⁉️

Either way you have to pay them at some point, and they are not fun to pay in any situation.

But, there is a lot of benefit to paying them now (especially under the current tax cuts)…

For one, paying taxes now can help you create a completely tax-free retirement for yourself (more on this in a moment).

But, it can also reduce the overall tax burden on your retirement portfolio (not only that but you can transfer money to your loved ones tax-free as well)!

Here are 4 reasons that you should consider paying your taxes now rather than later in retirement:

✅ Eliminate RDMs (required minimum distributions)

Taxable retirement accounts force you to take money out so that you can be taxed, but if you have paid the taxes now and contributed to a Roth IRA or a very specific type of life insurance contract there will be no requirements to EVER take money out.

So you can allow your money to grow forever and ever without ever having to take a dime out if you don’t want… and you can also take whatever you would like out with no tax bill whatsoever. 😎

✅ Eliminate tax-rate risk from your portfolio

All experts say that taxes are going up, so if you defer those taxes until later, tax rates will likely be much higher and you’ll end up paying way more 😔

This ultimately means you’ll have less retirement income because more will be going to pay taxes.😒

✅ You won’t pass a tax burden on to your beneficiaries

Roth IRA’s & Life Insurance policies transfer to your loved ones completely tax-free.

So rather than leaving your loved ones an IRA that will be heavily taxed, pass assets along that NEVER have an associated tax bill 😎

✅ Prevents social security from being taxed

When you reposition from taxable accounts to accounts that are tax-free in retirement you eliminate what’s called “provisional income” which how social security is taxed.

What’s even better is that there is NO LIMIT to how much money you can pull out of a Roth IRA and/or a life insurance policy while still collecting social security tax-free… 😏

As you can see, there are a lot of good reasons to consider biting the bullet and paying your taxes now.

It doesn’t make sense for everybody, but for a lot of people it does.

This is what I help people with on a daily basis, so let’s chat 💬😎.