The Independent Wealth Strategy
Advanced Financial Independence Group is changing the way you look at building wealth. Traditional methods of saving for retirement have at times proven disastrous. Many Americans have ended up with less retirement than they had originally planned. To complicate matters, many had accumulated most of their wealth in tax-deferred accounts. This has left many Americans with much less in retirement income than they were ever expecting. After 25 years of wealth management we knew that it was time for a new approach. We at Advanced Financial have developed a strategy to diversify your portfolio in a very specific way to allow you to build wealth independent of Wall Street and taxation.
A NEW APPROACH TO PLANNING
Our services range from financial planning to investment management. No matter what, though, our focus is always you.
The Strategy
The purpose behind this strategy is to help you create as much financial independence as possible. We want to help you create financial independence apart from employment, market volatility, and the danger of rising tax rates.
When you invest in 401(k)s or IRAs, you are entering into a business partnership with the IRS. Chances are, you won’t be able to predict with certainty what the tax rates will be in the year you take those dollars out. You will have no idea how much of that money is really yours. How can you accurately plan for retirement if you don’t know what share you can take home and spend? The key lies in transitioning taxable assets to tax-free asset quickly enough to take advantage of current low tax rates, but slowly enough so as not to enter a higher tax bracket than is feasibly affordable.
In his book The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement, David McKnight defines “true” tax-free investments as Roth IRAs, Roth Conversions, Roth 401(k)s and even a properly structured life insurance contract (commonly referred to as a “LIRP,” or Life Insurance Retirement Plan). The key is to have multiple streams of tax-free income, none of which show up on the IRS’s radar, but all of which contribute to you being in the zero percent tax bracket in retirement.
It’s hard to make the case that tax rates won’t rise, even dramatically. Failing to take advantage of lower tax rates will result in less after-tax cash flow at retirement. When considering our country’s fiscal condition and its mounting debt, it becomes imperative that a retirement roadmap be implemented that minimizes or eliminates income taxes. Doing so could permanently remove the IRS from your financial plans and allow you to enjoy a tax-free retirement.
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