What’s better. A 401k? A Roth IRA? Which of these, if any, helps us legally avoid taxes for our retirement savings? And is there a way for me to avoid paying taxes on my current 401k plan?

Well, the answers to these questions may surprise you. But what’s important to understand is that, when it comes to taxation and retirement accounts, the tax bracket you are in when you retire is the only way you can save money on taxes. That means, if you retire in a higher tax bracket than you were in when you were working, you lose! You end up paying more taxes than you would have to begin with.

And who doesn’t plan to retire in a higher tax bracket? Not to mention risk of the government increasing taxes from today until you retire.

So what does this mean? And what can we do about it?

Well in this video, we discuss the 401k and Roth IRA plans and how they work, and why they won’t protect you, and then we will look at how we can legally avoid taxes for retirement.

Thanks for watching Dan Thompson and Wise Money Tools!

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I have been involved in financial planning for over 36 years. I started out as a high volume stockbroker. After working with millions of dollars I decided there had to be another way for people to earn money in the market without all the risky ups and downs that leave you where you started, or worse. After reading a ton of books I came across a book on the Infinite Banking Concept and it completely changed my life and the way I view investments.
Now I focus on building wealth using a tool we developed by leveraging life insurance.
This way we can get:
Double Digit returns
Keep you money safe
Keep your money liquid
Create substantial passive income
Leave a legacy for you family
And do it all Tax-Free!

I post videos regularly so if you have any questions of comments feel free to email them to…

dan at wisemoneytools dot com…(read more)

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As people work hard to save for their retirement, one thing that can often be overlooked is the impact of taxes on their savings. However, there is a way to legally avoid paying taxes on your retirement savings – by utilizing a 401k account.

A 401k account is a type of retirement savings plan that allows you to contribute a portion of your pre-tax income towards your retirement. The money you contribute is then invested in various assets, such as stocks and bonds, allowing it to potentially grow over time.

One of the biggest advantages of a 401k is that you do not have to pay taxes on the money you contribute until you withdraw it during retirement. This means that you can benefit from tax-deferred growth, allowing your savings to potentially grow faster than they would in a taxable account.

Furthermore, if you follow certain rules when withdrawing money from your 401k during retirement, you can also avoid paying taxes on the money you withdraw. For example, if you wait until you are at least 59 and a half years old to start withdrawing money from your 401k, you can avoid early withdrawal penalties and potentially lower taxes.

Additionally, there are also ways to further reduce your tax liability in retirement, such as utilizing a Roth 401k account. With a Roth 401k, you contribute after-tax dollars towards your retirement savings, but you can withdraw that money tax-free during retirement.

Overall, by taking advantage of a 401k account and adhering to certain rules and strategies, you can legally avoid paying taxes on your retirement savings. This can help you maximize your savings and ensure that you have enough money to live comfortably during your golden years.

In conclusion, it is essential to understand the tax implications of your retirement savings and take advantage of strategies like a 401k account to legally avoid paying taxes on your hard-earned money. By planning ahead and making informed decisions, you can set yourself up for a financially secure retirement.