Money Solutions – Taxes, Inflation and Opportunities

Money solutions to help you eliminate wealth transfers and increase your wealth. How to combat taxes and inflation and take advantage of opportunities.

Time flies… and Time is Money!

Time and Money Solutions
Time and Money Solutions

The time is now and it provides a great opportunity to set aside some time, and review your financial priorities and goals. You can use this time to reflect back on the first 9 months of the year, and make adjustments or set new goals for the remainder of the year.

You likely recently paid your income taxes, or maybe you got a refund of what you overpaid? Regardless, do you feel like your tax money went to good use? And, when you factor in inflation, your money was probably worth less.

BUT… It doesn’t matter what has happened thus far in the year, “IF” we learn and grow from our experiences. There is no reason why this year can’t still be the BEST year of your LIFE!

While there is turmoil in the world and our economy may not provide the brightest outlook, there is still plenty of opportunity out there. The important thing is to have a strategy that allows you to protect your assets, prevent losses and take advantage of opportunities when they arise.

Ask yourself this very important question. What am I doing to plan for my financial future?

When considering your plan or strategy for the remainder of the year, you may want to consider these problems and solutions.

1. Does it make sense to have a strategy in place if inflation rises as many predict?

inflation
Inflation erodes the value of the dollar.

Here’s an example. If inflation rises, as many are predicting, do you have a plan in place?

The rule of 72 says that whatever amount of interest there is divided into 72, the corresponding number is the time it takes for money to double.

So, if inflation rises to 7%, then in 10 years it will take double the amount of money to spend like it does today. So, if you are living on $50,000 of income today, it would take $100,000 in 2024 to live like today. Would you be okay with a lower standard of living?

Here’s a SOLUTION.
What if there was a way to have inflation work for you? Permanent life insurance can take advantage of this by providing level premiums and increased benefits over time. Because life insurance is designed to get better over time, your savings will continue to grow and there is no risk of loss. Premiums remain level while the benefits and cash-values increase. If inflation increases, you will have access to capital correspondingly dividends should increase as well.

2. Do you have a plan in place to offset the rising costs of taxes?

taxes
Taxes erode your buying power.

Here’s an example. Federal income taxes today are at historic lows relative to when they started in 1913. However, our country faces increasing debt and a dwindling tax base. In a recent article, The Wall Street Journal, stated there are 143 Million Taxpayers and the Government collects $941 Billion in taxes. 11 Thousand Taxpayers make over $10 Million per year resulting in $348 Billion in taxes collected or 37%. And, 50% of Americans pay no federal income tax at all. How long can that work?

Entitlement programs are increasing and incomes are decreasing. Where will the money come from? Do you think taxes will increase in the future? If they do, does it make sense to have your money protected from rising taxes?

Here’s a SOLUTION.
What if there was a way to have your savings grow while not having the growth of your money subject to taxes? Under current law, the inside buildup of life insurance is not subject to income tax. And, loans are not subject to taxes either.

Annuities are another way to defer taxes and take advantage of the compounding effect. Coupled together, life insurance and annuities can provide you with guaranteed income in the future and protection from increasing taxes.

3. Do you have access to capital should opportunities arise?

Opportunity
Opportunity Next Exit

Here’s an example. Even during the Great Depression, and every other economic downturn, many people continued to increase their wealth and amass fortunes. If your money is locked up in qualified plans (IRA, 401k) and illiquid you may not be able to take advantage of opportunities.

Here’s a SOLUTION.
There are opportunities every where now in real estate, commodities, precious metals and even business. Being able to take advantage of these opportunities when the timing is right is paramount. However, if you don’t have access to capital, you can’t take advantage of them. If we do have inflation, and prices increase, wouldn’t it be nice to be able to own these assets? This is how fortunes are made. Permanent life insurance provides liquidity if opportunity arises.

This is a time for safety, and opportunity. Life insurance companies are made for times like these. You need a strategy that can protect you from the eroding factors on your money and help you prosper in the future.

Would you like to know how life insurance and annuities could aid you in combating inflation and future taxes? What if you had liquid capital available and could take advantage of opportunities when they arise?

To learn more about how you can combat taxes and inflation while planning for opportunities,  schedule a financial consultation and review: https://legacyinsuranceagency.com/financialreview 

Until next time,
Take Action!
Barry Page, RFC

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Barry Page, RFC is recognized as a leading expert on finance, life insurance and private banking. He is a financial consultant and independent life insurance agent who helps clients with tax advantaged investment alternatives. He specializes in showing families how to protect their assets, income and lives utilizing a macro-financial approach to planning.