How to Pay Zero Taxes in Retirement – Without Being Broke

Do you have money in a tax-deferred retirement account such as a 401(k), IRA or 403(b)? If so, you’re sitting on a tax time bomb.

I’m going to reveal the tax traps you face and show you how to move toward a 0% tax bracket in retirement (legally!) – but not by doing it the way most people do it, which is by being broke!

Conventional wisdom says, “Maximize your contributions to tax-deferred plans. Your money compounds without being reduced by taxes, and you’ll end up with more money during retirement.”

But like much conventional wisdom about personal finance, it’s not true…

The Society of Actuaries says if the tax rates are the same,

It doesn’t make any difference whether [the taxes] are taken away from you at the beginning (tax-exempt) or at the end (tax-deferred). It’s the same fraction of your money that is left to you.”

But most people look at their savings and think it’s all theirs. You may have forgotten you’ll owe Uncle Sam the taxes he let you defer all those years – on every penny you’ve put in and every penny of growth.

And according to Boston College’s Center for Retirement director, Alicia Munnell,

It’s a very big deal when people realize they only have two-thirds or three-quarters of what they thought they had.”

If the tax rates are actually lower during your retirement, you might come out ahead by deferring your taxes. But where do you think tax rates are headed long term? You must consider what tax rates might be during a retirement that could last 30+ years.

Most people we talk to think taxes ultimately must go up due to the aging demographics of our country and our unsustainable national debt. (Recently the debt passed $21 trillion for the first time.) If tax rates do go up, and you’re successful in growing your nest-egg, you’ll simply end up paying higher taxes on a bigger number.

You’ve probably been told you should expect to retire in a lower tax bracket, but many retirees complain that they’re actually in a higher tax bracket. That’s happening for two reasons:

#1: Required Minimum Distributions (RMDs)

Those pesky RMDs retirees have to start taking from tax-deferred accounts around age 70½ – whether they want to or not – are pushing them into a higher tax bracket.

#2: The “Social Security Tax Torpedo”

Many people are surprised to discover their income from various sources causes 50 to 85 cents of every Social Security dollar they receive to be taxed.

RMDs can trigger a “tax torpedo” that taxes up to 85% of your Social Security benefits. Financial planners and CPAs are seeing retirees’ tax rates double or more because of this!

Best-Kept Secret for Moving Toward a 0% Tax Bracket

There’s a terrific option available to you that you’re probably not hearing much about. It comes with numerous tax advantages too.

I’m talking about the kind of high cash value dividend-paying whole life insurance policies that the Bank On Yourself safe wealth-building strategy is based on.

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The advantages of a properly structured Bank On Yourself plan include:

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Get instant access to the FREE 18-page Special Report that reveals how super-charged dividend paying whole life insurance lets you bypass Wall Street, fire your banker, and take control of your financial future.

  • No RMDs to push you into a higher tax bracket
  • You put in after-tax money, which grows tax deferred and can be accessed tax free under current tax law – if you’re concerned tax rates will go higher long term, lean towards paying them today to eliminate unpleasant surprises
  • The income you take from the policy is not included when the IRS determines how much tax you’ll pay on your Social Security income
  • The income you take doesn’t increase your Medicare premiums, unlike IRA distributions and tax-exempt bond income
  • In addition to the cash value that builds up in your policy, there is a death benefit – an amount that is paid to the beneficiary when you die. The death benefit – which may be many times larger than your cash value – passes to your loved ones and favorite charities income tax-free

Unexpected Advantages of a Bank On Yourself Plan Include…

  • Guaranteed annual growth, plus the potential to receive dividends (some companies have paid dividends every year for over 100 years – including during the Great Depression)
  • Principal and gains that are locked in and don’t vanish in a market crash
  • A return that’s significantly greater historically than savings or money market accounts or CDs – over time, the return on these plans can be equivalent to a 5-7% annual return in a tax-deferred account, but without the risk of stocks, bonds, and other volatile investments
  • Liquidity and control of your money – with no government rules on when or how you access your funds
  • And a handful of life insurance companies even offer policies that allow you to use the money in your plan while it continues to grow – just as if you hadn’t touched it

Find Out How Adding Bank On Yourself to Your Financial Plan Can Save You BIG on Taxes, While Growing a Nest-Egg You Can Predict and Count On

The Bank On Yourself method gives you all the tax benefits and other advantages mentioned above, plus others too numerous to list here.

It’s easy to find out how a custom-tailored plan can help you reach your short-term and long-term financial goals and dreams – without taking any unnecessary risks.

Just request your free Analysis here right now while you’re thinking of it.

You’ll also get a referral to one of only 200 advisors in the U.S. and Canada who have met the rigorous training and requirements to be a Bank On Yourself Authorized Advisor. They’ll be happy to answer all your questions. Get started here:


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