I watched a video recently where a beachcomber was recorded saying, “Wow…why’s the tide going out so fast?” That particular beachcomber was still standing there when the tsunami came ashore. Inaction has consequences.
Not so metaphorically speaking, there’s a similar tidal wave of taxation heading toward many of you sitting on large balances in your qualified retirement accounts. While the government has graciously allowed your 401k and IRA to grow tax-deferred all of these years, Uncle Sam will get his due when you start to take that money out to live your golden years.
As a result of the Tax Cuts and Jobs Act (TCJA) enacted in 2017, we all currently enjoy the most favorable tax treatment we have seen, well, ever. This is the best time you might ever see again to take your money out of harm’s way.
It’s not about what you make, but what you keep. If running out of money when you’re too old to go concerns you, we should have a chat. Nobody wants to turn into fish food.