Hi my name’s Denver Nowicz, President of Wealth For Life.
We’re going over the 10 Principles for Building Wealth For Life.
This is Principle #2: Tax Buckets
Now what are tax buckets?
Well it’s probably the most important thing you need to know when it comes to diversifying your money.
Your money grows three ways: taxable, tax-deferred, and tax-free.
Taxable: CD’s, dividend income, after tax investments, rental income
Tax Deferred: (Taxed Later) 401k, IRA, 403b, etc.
Tax Free: ROTH, Life Strategies
Now the problem is most people get down to retirement, they’re usually maybe about 20% here in this taxable bucket, and 80% in this tax-deferred bucket, which is another way of saying taxed later.
So now they get down to retirement income, and everything is taxable.
And if you’re planning on retiring income over 75K or more, taxes can be one of your biggest liabilities.
You need to start splitting this up to where you get more diversified, and get more money in a tax-free position.
This can literally save you six figures or more in taxes by having more money in the tax-free position.
Nobody talks about that, but taxes are gonna hit you.
So if you want to learn more, check out the retirement success course that we have here.
The Retirement Planning Success course will teach you how to plan for your own retirement so you can minimize taxes, save six figures or more.
That is a good thing to do when it comes to wealth, protecting it from taxes.
Thank you for reading and I look forward to talking with you again.