According to Missed Fortune founder Doug Andrew, tax changes over the past few decades have drastically changed the way people should plan for retirement. Now, as the Missed Fortune founder explains, there are six thresholds in place where individuals might have to pay out as much as 33%-45% of their income, when state and federal income taxes are both in place.
As Doug Andrew explains in the Missed Fortune series, the Congressional Budget Office is estimating that within the next two or three years, most middle income Americans will be paying about 29.6% more in income tax than they did just two or three years ago. The reason for this, says the founder of Missed Fortune, is twofold. Bush’s tax cuts are set to expire around the same time the tax legislation that has recently been put into place takes effect. But as Missed Fortune explains it, since the Bush tax cuts were some of the largest we’ve ever seen, it stands to reason that when they expire, they’ll be some of the largest increases we’ve ever seen.
It’s bad enough that many Americans will soon be paying out at least a third of their income to taxes, Andrew states in the Missed Fortune videos and workshops. But, according to Missed Fortune, because of the national debt and other issues many believe that one day we’ll be paying as much as half of our income to taxes. It’s even worse for those who make more than $200,000 each year. The goal, according to Missed Fortune ’s Andrew, is to eventually tax those incomes at 62.5%.
Obviously, these large taxes are out of the range of affordability for many Americans. Complicating this is the affects of inflation, says the Missed Fortune workshop leader. If the cost of living doubles in the next fifteen years, it will crunch even further into the funds that remain after a sizable chunk of a person’s income has been given over to taxes.
Andrew explains in the Missed Fortune materials that by putting your money into a tax-free vehicle, you can pull out any amount of your nest egg without paying taxes. The key, says Andrew, is to make sure it’s not deemed earned, passive, or portfolio income. According to the Missed Fortune materials, there are only three types of income that fall into a taxable income category: earned income, passive income (rents or leases), or portfolio income (interest or dividends). And Andrew emphasizes to his Missed Fortune readers and workshop attendees that IRAs and 401ks are classified under one of these three.
For four decades, Missed Fortune founder Doug Andrew has been pointing clients toward ways to realize income that is not deemed earned, passive, or portfolio income. The IRS is fully aware that the policy owners receive this income, but since it is not earned, passive, or portfolio income, it is not taxed. Doug Andrew details this further in the Missed Fortune workshops and educational materials. For more information, visit Missed Fortune online at www.missedfortune.com