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In 2021, most people who are focused on their finances believe taxes are going up, especially at the federal level. Our national debt (USDebtclock.org) was $15,000,000 000 in 2012, is $32 Trillion today, and will likely be $90 Trillion and rising in 2029.
About four out of five retirees pay little or no income tax. As a result, the Internal Revenue Service and other taxing authorities are coming after those who have money to collect taxes.
Taxes are on sale today. If you have too much money tied up in qualified plans (retirement plans), which are not Roth IRAs, and the government changes the rules, you're stuck. You must swallow hard and pay the taxes, or you don't get to spend your own money. Not enjoying the fruits of your labor and sacrifice can be thought of as a 100% tax.
Diversification in investments shouldn't just be across asset classes. Tax treatment is another form of diversification. Meaningful money you can access without tax consequences is crucial when your world can change quickly.
We have ways of safely creating tax-free income for the future. Of course, such plans are not a fit for everyone, but many see this as a conservative solution to avoid future taxes while maintaining liquidity and flexibility.