"[The Power of Zero] clearly shows how to make maximum use of a tax deferred and tax free retirement savings plan.
The part about reducing taxable income for Social Security was something I had never considered."
The United States Government is currently over $30+ TRILLION in debt... where do you think the government will go to pay back that money?
Let's play a quick game...
What year do you think it was just one trillion seconds ago?
One thousand seconds is about 17 minutes...
One million seconds is about 12 days...
One billion seconds is about 31.7 years...
And one trillion seconds is about 31,709.8 years!
That's right, one trillion seconds ago, Woolly Mammoths were roaming the earth, not even close to being extinct.
That's right. Taxes.
Now while there may be multiple sources that the government can pull money from, income taxes have always been on the radar.
And retirement accounts such as IRA's and 401(k)'s fall right in that category.
And we are currently at some of the lowest tax rates in history.
But this doesn't have to keep you up at night!
By learning about, and implementing, the concepts taught in The Power of Zero, you can get to the 0% tax bracket*, and ensure that you won't have to worry about where taxes are in your retirement years."
-Andy Toolson, MBA
For example, did you know that Social Security was never designed to provide retirement income, but only to help those workers who might live too long?
When you consider how much of the government's revenue is spent on Social Security, Medicare, Medicaid, and the interest on the National Debt, it's shocking to consider how taxes will have to be increased to keep these programs solvent.
Chapter one will also give you a quick overview of the strategies you will learn in the following chapters, particularly why understanding the three "buckets of money" is so crucial.
Bottom line, this bucket should be used to cover the unexpected costs in life that are typically more "immediate" and that you need quicker access to funds for.
The key word: Liquidity.
However, just like any bucket of money, the trick is to know just how much money should be allocated to this bucket, along with the pros and cons that accompany it...
All of which you will learn in the book!
This bucket includes investments such as a 401(k) and IRA, which a lot of people tend to favor for two reasons:
1) You get to "defer" your taxes on the money you put into those accounts, and
2) You feel like you can "set and forget" it most of the time!
However, this strategy can have MANY unintended consequences that the majority of people are not aware of...
Yes, this bucket of money should be used, but it should not be confused with the "tax-free" bucket that is talked about in chapter 4.
You will need to pay those taxes at some point!
And taxes may not be as low for you then as they are now.
All this, along with strategies to avoid unintended consequences, are covered in this chapter!
Most people that are saving (or intend to save) for retirement are familiar with, and perhaps even using, the first two buckets of money...
But what about this, the most favorable bucket of all?!
This is what many people overlook, and with dire consequences.
When properly understood and utilized, the tax-free bucket can allow you to keep more of your hard earned dollars, without having to dish out a portion of your retirement funds to that Uncle that nobody likes... Uncle Sam!
Now, this isn't a situation where you can simply know what products to use and dive right in, there are a few key points that you must be aware of, that are discussed in Chapter 4.
LIRP is an acronym that you would do well to remember...
Because unlike many products, income distributions from a LIRP are truly tax-free.
Unlike a Roth IRA, you can design a LIRP to be customized to you and your exact situation, without running into contribution limits.
Let that sink in...
No contribution limits based on you and your plan design, and truly tax-free income.
THIS is why you must carefully read chapter 5.
You may be wondering what the catch is, and I’m here to tell you that there is none.
So why would we do this?
Because we know that a certain number of people will get the book, and continue their planning as they have always done.
HOWEVER, we also know that there are people that will read the book, recognize the power in what we are offering, and want to know more.
Here's EXACTLY what you'll learn in this book...