America's Top IRA Expert, Ed Slott, Presents the

Retirement Savings Time Bomb

“The Best Source for IRA Advice” - The Wall St Journal

“America’s IRA Expert” – Mutual Funds Magazine

RETIREMENT NEST EGG

You work your entire life to accumulate your retirement nest egg and now you want to enjoy it. But, it's the taxes you pay that will determine how much fun you're really going to have with your life savings, your retirement money. When I say retirement money, I'm talking about all your tax-deferred savings - your IRAs, your 401(k), your 403(b), your company pension plan. So, what is tax-deferred money? It's kind of like you're dealing with the devil, and as with any deal with the devil there is a day of reckoning. And they have a name for that date, it's called your required beginning date. That's the date that our government has decided that they're just sick and tired of waiting for you to drop dead, and they want their money back! That's always been the case, that's the income tax. This money is also subject to estate taxes. This is highly taxed money. But, here's the thing, who's going to get that money? Do you ever have those dreams: sitting around, thinking, “Well, I’ve worked my entire life, now I want to enjoy it.” Who do you envision when you think about those days, spending your money - I'll tell you who you're thinking about, cause I know… Uncle Sam. That's who's going to get your money, because Uncle Sam has a plan and you don't. And the one with the plan wins. What I'm talking about, , is creating a plan so you can have more money for you today, more money for your retirement, and more money for your loved ones, and more of it tax-free. Anybody can do it, but you need a plan…in other words, an exit strategy. You put the money in and it grows tax-deferred. You put the money in, but do you have a plan for getting it out? Because it's the way you take it out that determines how much you keep and how much goes to the government. Most people have no plan.

RETIREMENT PLANNING IS LIKE A FOOTBALL GAME

Retirement planning is like a football game: the halftime score is irrelevant. Tell me the score at the end of the game and I'll tell you who won. It's the same thing with your retirement savings.  A football game has two halves, the first half and the second half.  It's the score at the end of the game - how much you keep - that we care about – that’s what matters. The first half of the retirement game is the accumulation phase, where you accumulate and build your retirement savings.  The second half of the game is the distribution phase -it's in the second half of the game where this game is won or lost - but most people don't play in the second half.  A lot of people say, “Well, I'm happy.  I've accumulated all the money I'll ever need for my retirement… I'm done!”  They go into the locker room at halftime & pat themselves on the back. Meanwhile, the IRS comes out for the third and fourth quarters - they're playing nobody - so they win! Because it's their exit strategy, not yours. Because it's their plan, not yours.  It's so important to play in the second half of the game. Where you can actually end up with more, not less. Most people don't know about it. It doesn't matter how much you make, it's how much you keep that matters - how much of it that stays with your family, how much of it that stays away from the government.  If you give it all back to the government at the end, all you did is build a savings account for the government. That's what most people do.

It happens to most people because most people don't know about the second half of the game and neither do their advisors.  Many advisors can help you build money but very few advisors have the specialized knowledge to help you create a plan in the second half of the game. That’s a big problem. Why would you be interested in a solution if you didn't think you had a problem? The reason most people don't play in the second half of the game is because they don't think they have a problem.

It's the Retirement Savings Time bomb. People with the most in retirement savings are the most at risk. It's the people that have most of their wealth, their net worth, tied up in some sort of retirement account.  The Retirement Savings Time Bomb sounds bad, but anybody can avoid it, if you have a plan. A plan that provides more money for your retirement and more money for your family.

People look at their statements and say, “Look at my IRA, it's 1.2 million.”  But a lot of it is not their money. They’re not keeping most of that, it's just temporarily on their letterhead. The IRA is not sacred. You either use it, leverage it, or lose it.

CLARITY FINANCIAL INSURANCE | BILL MOELLER
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