IS TAX-ADVANTAGED INVESTING
ONLY FOR THE RICH?
No! In fact, tax-advantaged investing is important to nearly
everyone. For example, a New York resident in the 28% federal income tax
bracket, has a combined federal and local tax rate of 34%. Looking at it in dollars and cents, the
New York
resident in our example took home only $66 of every $100 of taxable income
earned in 2008. This is without considering various other state taxes and
fees such as the sales tax and school district tax. As this shows, a significant portion of your income goes to the
various tax collectors, even when you are not in the top tax bracket.
The conclusion is inescapable. Almost everyone who pays taxes
can benefit from tax-advantaged investing. And, as your taxes rise, so does the
VALUE of your deductions and exemptions.
WHAT CAN YOU DO NOW?
You can use the MAXIMUM
amount of deductions and exemptions, such as one or more of the three
tax-advantaged investments shown below.
TAX-ADVANTAGED FINANCIAL PRODUCTS
*
Tax-Free Municipal Bonds/Mutual Funds
* Life Insurance and Annuity Products
* Retirement Plans (e.g., IRA's)
These can help you keep more of what you
earn. We've heard a lot from past administrations and the current one about
"investments" in the government. We know of no investments in the financial
world where if you don't pay into it, you end up in court facing imprisonment
and/or heavy fines. My friend, a tax is still a tax; calling it something
else doesn't change the end result -- the government spends your money and you
don't.
WHICH INVESTMENT IS RIGHT FOR YOU?
There are so many choices, but only so many investment dollars.
You need to decide amongst annuities, IRA's, Tax-Free bonds, or various mixes of
these. Then, how much should be invested and in which specific investment. These
questions cannot be answered in any general report or book. The answers must
be tailored to each individual's circumstances. That is why we will build a personalized financial profile for you
which will include your financial objectives, an assessment of your risk
tolerance level, the time lines involved, and a determination of discretionary
income available.
During our first meeting, we build a personalized financial
profile, which includes: your financial objectives, and assessment of your risk
tolerance level, the time lines involved, and a determination of discretionary
income available.
In a subsequent meeting, we will establish the level of
investment of investment needed and develop the optimum investment strategy
tailored to your financial profile. Finally, we will monitor and report to you
quarterly the progress that your investment is making towards your goal.
While all the information presented in
this report may have been of interest, you may be in a quandary as to what to do
next. In conclusion, if you are paying too much in taxes, please email
us or give us a call. Don't procrastinate, take action now. Please include
your name, telephone number and the best time for us to call you.
___________________________________________________________________________
1. This information, and a large portion of the material covered
in this report have been extracted from FRANKLIN/" TAX SCT 06/93 and Franklin/Templeton distributors, inc., “Money
Matters: Tax-Advantaged
Investing”, tax SCT 06/93.
2. This data is from "Historical Statistics of the United
States, Colonial Times to 1970," Part 2, Page 1095, Table VIII, U.S. Department
of Commerce, Bureau of the Census.
3. Refer to Index Information in Hypo Illustrations, Copyright
1994, Towers Data Systems.
