For a while, stockpiling your retirement funds into tax-deferred accounts worked. After pension slowly faded and retirement became less employer-sponsored, self-funded retirement has been the standard for decades now. IRAs and 401(k)s have become a staple for traditional retirement plans–contributing to these accounts with pre-tax dollars in hopes that when you retire and withdraw tax rates would be lower than in your working years.
Now, currently, taxes are at a historic low, but are set to increase at the sunset of 2025. And experts like David M. Walker have said that for many reasons taxes likely will double.
This week Dave hosts Larry DeLegge, Vice President of Business Operations of David McKnight and Company, to discuss how to approach the tax rate risk you will unfortunately experience in your retirement.
During this episode you will learn:
- why tax rate risk destroys even well-planned retirements
- why tax rates are bound to increase drastically as soon as 2030
- why tax-deferred accounts should not be your only account you use for retirement
- strategies to combat tax rate risk