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The public tends to focus on the total national debt, which just passed the $17 trillion mark. But that figure pales in comparison to the federal government’s long-term unfunded liabilities —money the government is obligated to pay over and above the revenues it is estimated to receive. According to the U.S. Debt Clock, total long-term unfunded liabilities are at $126 trillion, a $1.1 million liability for each U.S. taxpayer. The main driver of that astronomical number is two of our major entitlement programs: Social Security and Medicare.
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Avoiding The TAX Train Wreck
76,000,000 Baby Boomers Rushing to Retirement
Huge Problem No Money
Who are the Baby Boomers? Most famous generation in American history. The U.S. Census defines the Baby Boomers as those born between Jan 1st, 1946 and Dec 31st, 1964. You see, after U.S. troops returned from World War II, they quickly settled down and everyone started having lots and lots of babies. This gigantic generation has transformed America as they have passed through every stage of life. Now they are getting ready to retire. Read more: http://www.businessinsider.com/facts-about-retirement-crisis-2010-12?op=1#ixzz2qylZeoJZ
The Day of Reckoning is Arriving
The Promises Made Can Bankrupt a Nation
$202 TRILLION US fiscal gap
$1,100,000.00 Per Taxpayer The public tends to focus on the total national debt, which just passed the $17 trillion mark —up from $10.6 trillion when President Obama took office. But that figure pales in comparison to the federal government’s long-term unfunded liabilities —money the government is obligated to pay over and above the revenues it is estimated to receive. According to the U.S. Debt Clock, total long-term unfunded liabilities are at $126 trillion, a $1.1 million liability for each U.S. taxpayer. The main driver of that astronomical number is two of our major entitlement programs: Social Security and Medicare. http://www.forbes.com/sites/othercomments/2013/10/30/u-s-national-debt-1-1-million-per-taxpayer/
$126,000,000,000,000.00 Equals Bankrupt Nation
• But our politicians just keep spending money. In order to pay the Baby Boomers what they are owed the federal government may indeed go into even more debt and have the Federal Reserve print up a bunch more money. • So in the end, Baby Boomers may get most of what they are owed. Of course it may be with radically devalued dollars. Already we are watching those on fixed incomes being devastated by the rising cost of food, gas, heat and health care. • What is going to happen one day when prices have risen so much that the checks that our seniors are getting are not enough to heat their homes?
• What are we going to do when those on fixed incomes are buying dog food because it is all that they can afford? • We are rapidly reaching a tipping point. As the first Baby Boomers retire the system is going to do okay. But as millions start pouring into the system it is going to start breaking down. • No, there is not much that we can do about it now. We should have been planning for all of this all along. Americans should have been saving for retirement and governments should have been setting money aside. • But it didn't happen. • Now we pay the price. Read more: http://www.businessinsider.com/facts-about-retirement-crisis-2010- 12?op=1#ixzz2qyw09Yjg
The Ticking Tax Time Bomb What you don’t know about taxes and your 401k ,IRA, 403b will cost you a fortune
Fox Business News ... "The life insurance industry has the best IRS- approved retirement savings plan today-and most investors know nothing about it. This retirement savings vehicle is not a company-sponsored, pre-tax qualified, 401(k)- type plan. It's also not a Roth. It's not an annuity or whole life. Despite sales of well over $1 Billion in 2011 for the top 39 carriers surveyed, it is the financial industry's No. 1 secret-Indexed Universal Life (IUL)". Read more: http://www.foxbusiness.com/personal- finance/2012/02/22/legally-cutting-out-tax-man-in- retirement/#ixzz2RpUtdNV5
Huge Tax Issues Jan 22 (Reuters) “The baby boom generation is moving into retirement with something no other generation has had: huge tax liabilities.”
"They love the tax deduction when they are putting money in, but some have no after-tax accounts at all."
Paying a tax on your Social Security For single taxpayers whose earnings, including 50% of their Social Security benefits, are over $25,000 ($32,000 for joint filers), 50% of benefits taxed. Once that income rises above $34,000 for a single and $44,000 for joint files, 85% of benefits taxed.
"It's kind of a new thing with current retirees," observes Mackey McNeil, a certified public accountant and personal financial specialist in Bellevue, Kentucky. "They love the tax deduction when they are putting money in, but some have no after-tax accounts at all."
Big headache for retirees A single person whose income is in the mid- $30,000s could catapult herself into a 46% marginal tax rate simply by withdrawing an extra $1,000 or $2,000 from her IRA; that could bump her into a higher income tax bracket and a higher level of Social Security taxes. (85%) • does not even include local/state income taxes, which can add an additional 8 to 10 percent tax burden.
The biggest burden, of course, will be borne by people who don't plan ahead You can cut/eliminate taxes with some planning.
Make lemonade out of lemons Move from Forever Taxed to NEVER Taxed.
