Issue 24.10
Saving throughout your entire life can sometimes feel just like scaling a mountain. I know I personally made many personal sacrifices to contribute to my savings, so many things I wanted and thought I needed. Truth be told, I can’t remember what most of them were so saving my money instead was well worth it.
As you’re nearing the top of the mountain in your savings where you’re getting ready to retire or are already retired, now is the best time to be aware of just what kind of mountain you’re climbing. After all if you have your savings and retirement accounts in a tax-deferred or taxable account, then you may be sitting at the top of a volcano awaiting the tax time-bomb.
How many of you remember the eruption of Mt. St. Helens in 1980? I remember because I was moving to Olympia, Washington at that time. I remember the ash was everywhere and it seemed like forever before the sky finally cleared and we could see that half of Mt. St. Helens was gone – not moved, gone!
That’s the way it seems to be for our savings and retirement accounts with taxes, the market, the economy and many other things going on right now. We work so hard to get to where we are in life and at our retirement or our death, the government, market losses, low interest rates or even inflation swoop in and take what they think is their share leaving us with much less than we planned for.
How can you get around this? The best way to scale a mountain, volcano or otherwise, is to follow a guide. A guide knows the ins-and-outs of the mountain and can take you safely to the top and back down the other side. Just like a mountain guide, a financial guide is aware of the tax laws and economy changes going on all around you. Just like scaling a mountain is easier with a guide the best way to ensure you can reduce your taxes, protect your money and prevent outliving your income is with the help of a financial guide, one that has a fiduciary responsibility to look out for you. A financial guide will guide you through your retirement and help ensure your retirement dollars are kept on track.