I often ask people where they think tax rates are going in the future? They usually pause and then say without hesitation “They’re going up!” I usually reply yes most likely.
Then I ask if they are contributing to a 401K or IRA. Which most often there CPA or financial adviser told them to do.
Most, if not all 401K, IRA or Deferral plans cause you to delay taxes to a later date when taxes are most likely higher. The idea is that you are making less money and are, therefore, living on less money.
I do not subscribe to this logic as an investor. My money is always working for me and always growing, so why would I want to give myself a bigger burden down the road and help Uncle Sam?
Lucky for us we know a small way to “Free Your IRA for Jail” and get the government to do it for you.
Let me show you.