Which would you like, Taxable or Tax-Free Retirement?

You may have heard one of MLC Financial Services ads about turning your taxable retirement accounts into a tax-free lifetime income stream. There have also been numerous books written recently on this topic.

Sounds too good to be true, right? Believe me, it’s true!

For decades, the idea was to take a tax break during your working years, and postpone paying the taxes until you’ve retired. That makes sense if you are planning on being in a lower tax bracket when you retire, but will that really be the case?

Let’s take a moment and consider what is going on in our country. Our national debt has just past $21 trillion dollars.  Yes… trillion! A record high level of Americans are now participating in entitlement programs, and for the first time since 1982 the total cost of Social Security will exceed total income for the year.

It doesn’t take a mathematician to understand that the time to pay the piper is drawing near. How will the government pay for these extraordinary debts?  One way… increase taxes.

For the majority of Americans who have been counting on their tax bracket to be lower in retirement, this could be devastating to their plans for income during their golden years.

MLC Financial Services has a solution.  We’ve already helped hundreds of our clients establish a special program that will provide tax-free… that’s right… tax-free income to them in their retirement years. This solution is not for everyone, but a Wealth Planner advisor can sit down with you to determine if it’s a good fit. Even if you already have a 401k or IRA, these IRS approved programs can still work. We would love to share with you the secret to turning taxable into tax-free.

The earlier you get started, the better the results, so don’t hesitate another day.



Stretch your IRA across generations:

Most Americans remember Benjamin Franklin for the incredible contributions he made to our country in its early years. As one of our Founding Fathers, his inventions, writings, scientific findings, political actions, charitable acts, and Constitution penmanship have earned him the title of “The First American”.

What most Americans don’t know about Benjamin Franklin, is that he also had a brilliant understanding of money. In fact, one of his greatest financial accomplishments was a legacy he left to the cities of Boston and Philadelphia through an establishment of an annuity in trust. Leaving 1,000 Pounds to each city in 1785, Franklin was able to stretch his initial gift into millions of dollars for the building of schools and scholarships for high school students 200 years after his death!

In a similar fashion, MLC Financial Services can assist you in establishing a plan to stretch your IRA funds across multiple generations to children, grandchildren and great grandchildren… or to the charity of your choice. Often times, when inheritance is left in a lump-sum fashion to kids, it is quickly squandered or lost to heavy taxation. Imagine instead, providing a lifetime stream of income that can span generations, truly leaving a legacy to your family.

If this is something that interests you, contact us today. We can provide detailed illustrations on how you can create a lifetime of income for several generations, turning a small seed into a giant oak tree for your family.



Questions on Rolling your 401K?

If you’ve been contributing to a 401K (or other defined benefit plan) at your place of employment, we applaud you for taking steps towards securing your retirement! Many companies offer a match on a portion of your contributions… which is actually free money to you.

Be careful though, as 401K investments are typically subject to the ups and downs of the market. Also, many of these plans have fees that can eat away at your balance, even in negative years.

As you get closer to retirement you may want to consider rolling all, or a portion of your 401K into an IRA to give yourself more flexibility on how your money is invested. Rules vary from company to company on rollovers, but generally your plan administrator may allow you to move your funds, or a portion of your funds, out of the 401K if you are over the age of 59 ½, even if you are still working and contributing. Certainly, if you have terminated employment, you will have the option of rolling the 401K.

Some plan administrators require their own paperwork, and others will accept transfer requests from another financial institution.  Each company is different.

When you work with MLC Financial Services to roll over your 401K, 403B, 457, or Thrift Savings Plan, we will assist you with all of the necessary paperwork and help to simplify the process. We help our clients with hundreds of rollovers each year, and we would appreciate the opportunity to assist you as well.

Contact us today if you’d like a complimentary review of your current 401k situation.



Convert your Traditional IRA to a Roth!

Roth conversions are becoming more popular each year, as Boomers realize that they may be in a lower tax bracket today than they will be in retirement. As our government keeps spending money, our country’s obligations continue to skyrocket. Today, our national debt has just surpassed $21 trillion dollars. We have more Americans participating in entitlement programs than ever before, and systems like Social Security and Medicare are at risk of collapse under current law.

Where will the money come from to meet all of these commitments? Taxes.

If you are like millions of other Americans, concerned about taxes increasing in the future, don’t wait any longer… Start doing something about it now.

The IRS has lifted the biggest barrier to converting a traditional IRA to Roth IRA… your income level. Currently, it doesn’t matter what your annual income is, you can still convert to a Roth. No one knows how long this option will be available because the IRS could decide to change it at any time.

MLC Financial Services has a solution, and we’ve already helped many of our clients begin to convert their fully taxable IRA’s into tax-free Roth’s. This solution is not for everyone, but we can sit down and help determine if it makes sense for you.

The earlier you get started, the better the results, so don’t hesitate another day.