Most went on their merry way and $30T slipped right by us.
Was it Putin and the fog of war? Rising interest rates? Ottawa? Extraordinary inflation?
Most didn’t notice the alarm clock RINGING to wake us up to $30T. I’m referring to $30 TRILLION of US national debt. The milestone was hit in February.
Do you realize the significance of that moment? US Debt Clock.org shows the debt per citizen is over $90,000 each but more importantly for the roughly 39% of us that pay taxes (2020 results) it’s over $240,000 per taxpayer.
And it continues to grow out of control at an alarming rate. The national debt has grown over $7 TRILLION since the pandemic.
Please don’t roll your eyes…this will affect each of us.
The day is coming, if we don’t make changes, that the interest on our debt (and interest rates are on the rise!) combined with our federal entitlement programs (Social Security, Medicare, Medicaid, etc.) will not be sustainable.
Do you think taxes will have to rise so we can pay our bills as a country? Everyone I ask does.
You must find ways to mitigate your tax over these coming future years. Here are 7 possible strategies. How many will work for you?
Each of these strategies has the potential to create future tax-free income for your retirement. You may not be able to use them all, however each must be considered.
Possible Tax-Free Cash Flow Strategies
- Roth IRA
- Roth 401(k)
- Roth Conversions
- Required Minimum Distributions (RMD)
- Life Insurance Retirement Plan (LIRP)
- Social Security
- IRA Qualified Charitable Distributions (QCD)
How many of these have you explored? How many are you able to put to work in your retirement income strategy?
Some think you’re not a good citizen if you don’t pay taxes in retirement or employ every creative and legal strategy to lower your taxes or reduce them to zero. Judge Learned Hand wrote in a famous opinion, “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.”
If you haven’t begun to consider how to lower your taxes one day you will have a very unpleasant surprise when you realize you have a partner in your retirement plans. He’s a heavy-handed uncle called Uncle Sam. When your turn comes, he’ll decide how much he wants in taxes. It will be a big deal after saving for years that you may only have two-thirds or three-quarters of what you thought you had.
$30T is only the start. Bookmark the US Debt Clock.org and come back to it occasionally. AND, do something to prepare yourself for what’s coming.
