You’re Doing It Wrong
To: YOU
Subject: You are the revenue producing machine that is funding the financial services industry and the IRS
Traditional financial planning is wrong, reckless, and in most cases fraudulent. I can prove this to you mathematically and legislatively. Wall Street and Congress are banking on the ignorance of the masses by pocketing trillions in fee-based accounts and leveraging your qualified retirement money as their accounts receivable. With trillions in retirement accounts not yet taxed, congress can spend money it does not have and bail itself out by increasing the taxes owed on your money. You currently have no idea what tax rate you will pay on your 401(k) distributions and/or IRA distributions. It is likely that you want to make more money in the future (or will have to) and speculate our tax brackets will increase over time. Both scenarios will impact your taxable retirement accounts and yet you blindly defer your tax bill because you were told to “take control of your retirement.” Wall Street encourages these types of accounts so they can collect 1-3% annually in fees. Congress encourages these accounts to guarantee future tax revenue.
The Retail Portfolio (this is probably you): IRAs, 401(k), brokerage account, pensions, real estate, and social security. Some combination of this basic portfolio encompasses 90% of Americans. Here is what Americans are failing to realize. Distributions out of an IRA are taxed as income. Distributions out of a 401(k) are taxed as income. Distributions out of a non-qualified brokerage account are taxed as capital gains, and if they are short-term cap gains, they are taxed as ordinary income. Your pension is taxed as income. Rental income from real estate is taxed as income. The appreciation of the real estate is taxed as a long- or short-term capital gain. Now, here is the kicker, if you report too much income from these sources during retirement, the IRS will double tax up to 85% of your social security as ordinary income. Remember, you likely believe that taxes will go up in the future. Ask yourself, if tax rates go up, what could happen to the real value of my retirement?
The Ideal Portfolio involves several assets and tax codes working together to avoid a tax liability in the future. The portfolio can be completely tax exempt and/or tax free and may not report as provisional income. This means that your social security could be tax free. By simply avoiding unnecessary market volatility, fee-based advisory, and the IRS, I can significantly increase the output of your retirement using the exact same amount of money. This strategy is not new. In fact, it is all around you. You will see it on the backbone of large banks and large corporations. It will be referred to as golden parachutes, executive compensation, or OPEB (Other Post-Employment Benefits). These concepts refer to a strategy that the wealthy use to eliminate their tax liability. Ask yourself, what are wealthy individuals doing with their money that I am not? Chances are, they are using The Ideal Portfolio.
I have started a movement by educating as many people as possible about these tax efficient strategies. Working Americans are constantly getting stuck with the tax bill for reckless government spending. What tax bracket will you be in during your retirement? What will you pay in federal and state taxes? What are you paying in fees? Now, this movement is small and personal because we can only reach a limited amount of people one on one. However, our firm is growing fast, and people are getting on board quickly. We are also in the process of developing a nationwide capability to scale our methods to every American who will listen.
I would like to teach you these strategies right now. My firm can help you understand what they do not want you to know.
Is there a better way? You better believe it.
