Just for a moment, imagine you need to borrow some money. It could be for a house, a car, a boat, etc. The loan officer enthusiastically informs you that you have been approved for the loan but with one condition. The bank will decide what the interest is after you borrow the money! Would you borrow the money?
So you might ask, what does this have to do with your retirement account and your Social Security benefits. Well, does anyone know what tax rates will be in the future or how much the government will need to run the government with a $21,000,000,000,000+ National Debt and roughly 10,000 Baby Boomers turning 65 and going on Medicare every day until the year 2040? This begs the question . . . How much of your hard-earned money will you really get to keep? Answer: Unless you can accurately predict what tax rates will be when you take distributions, you don’t know how much of your retirement account or your Social Security benefit is really yours to keep.
Understand How Your 401(k)/IRA Works
Our Goal Is To Help Protect You From Future Taxation Risk.