Money Pit

• Understanding the Money PIT
  We believe there are three obstacles that prevent most working Americans from achieving a high level of financial success. We call them the Money PIT. The acronym PIT stands for Procrastination, Inflation and Taxes.
  
  Procrastination, the first obstacle, is by far the worst. Why do we procrastinate?

  • We fear making a bad decision.
  • We do not manage time wisely.
  • We fear someone taking advantage of us.
  • We lack the knowledge to make informed choices.

  Planning from a net perspective addresses these fears to provide you with a sound education about your finances and the alternatives available to you. With a sound education you can make the right decisions to take control of your financial future.

  Inflation is the second obstacle. 
  
  Remember when your car cost around $2,000 and your house around $25,000? It’s hard to believe that today you may be paying more for your automobile than your first house! Your 1985 dollar is only worth about 25 cents at today’s prices.
  
  Remember that money itself has no value unless you are protecting its purchasing power from inflation and taxes. 
  
  Eischen Financial Group helps you minimize the effects of inflation.

  The third obstacle is Taxes. 
  
  Have you considered how many types of taxes there are? We counted over 30 different types of taxes most working Americans pay every year. Of course the big fourare:

  • Federal Income Taxes
  • State Income Taxes
  • Social Security Taxes
  • Estate and Death Taxes

  The sheer number of taxes is frightening, isn’t it? Yet the real problem with taxes is the lost opportunity costs. Once the money is spent on taxes, it is not available for you to accumulate wealth. 
  
  Most of us think that we invest $10,000 and we earn 10 percent return on it, we have earned $1,000. However, because of taxes, assuming a 30 percent tax bracket, that is not necessarily true. We only retain $700 – $300 goes to the IRS. If that $300 was invested at 10 oercent for 40 years, it could have grown to $13,580. That is a loss in opportunity! Once money is spent on taxes, it is lost forever. 
  
  You must find a way to invest while limiting the dramatic impact of inflation and taxes.

  Navigating, Equipping, Tailoring
  We can help you avoid many financial “PIT” falls and equip you with a plan tailored to meet your individual needs. 
  
  Keep more of what you earn. 
  Learn the obstacles to:

  • • Saving
    • Investing
    • Tax Efficiency

  Learn how to:

  • • Acquire, accumulate and retain wealth.
    • Apply the secrets of the wealthy that are available to everyone.

  The Financial Planning Process
  Our process is comprehensives and includes:

  • An in-depth interview
  • Determining each client’s financial situation
  • Assessing personal goals and objectives
  • Reviewing relevant documents
  • Preparing a preliminary client report
  • Providing recommendations for action on taxes, investments, cash flow and retirement.
  • Explanation of estate planning and insurance.

  To accumulate wealth, you should learn the methods that the wealthy are using. Working Americans should transition to a higher level and change from savers to investors so their investments have the potential to grow faster. 
  
  The wealthy know how to save, invest and manage their investments for Tax efficiency during each of the three phases: Accumulation, Distribution, and Legacy. The wealthy have advisors that have the tools to allow them to grow and protect their money. 
  
  Our goal at Eischen Financial Group is to provide you with the same kind of attentive consulting advice that the wealthy employ.

  Have We Set the Wrong Priorities? 
  It seems like most working Americans focus on the rate of return and do not take into account the dramatic impact of taxes and inflation and the importance of creating income streams you can’t outlive in retirement. 
  
  At Eischen Financial Group, we know that for most working Americans it is not getting, but keeping wealth that matters. It matters now, for your retirement, and for your loved ones and special charities at death. 
  
  Distributing Your Hard-Earned Money!
  Implementing improper distribution strategies at retirement can cost you thousands in tax dollars. Here are just some of the things to think about.

  • Income tax. Remember that your retirement plans may have never been taxed before. Taxes are due as they are withdrawn.
  • The “too soon” tax. A 10 percent penalty if distributed prior to 59 ½ years old (except for 72).
  • The “too late” tax. A 50 percent penalty if you reach 70 ½ years old and you do not take the required minimum distributions of the money (except Roth IRAs).
  • The Double Tax. Balances left at death could be double taxed, with both income and estate taxes up to or over 75 percent!

  Many working Americans are blind-sided by the dramatic effects of taxes and have lost up to 75 percent or more of their retirement plans! Without proper planning, you may be making your retirement plan a retirement plan for the IRS.

  Perception vs. Reality
  What was right for grandparents and parents is not necessarily right for us.

  Perception

  1. Will retire in a lower tax bracket
  2. Will not live long in retirement
  3. Will need less income at retirement
  4. I have plenty in my 401(k) and IRAs

  Reality

  1. Due to inflation and creeping taxes, many Americans will probably retire in a higher tax bracket.
  2. Retirees are healthier and more active today, and will probably be living much longer than previous generations.
  3. Active retirees are spending as much as they did before retirement. Retirees will probably need more money in retirement. Due to inflation, the cost of purchasing is doubling every 12 to 15 years.
  4. Actually you don’t own all the money in your 401(k) and IRAs. Uncle Sam is your senior partner! And without a distribution strategy, Uncle Sam may claim 50%-70% of your 401(k) and IRAs in the form of taxes.

  How Can You Avoid This PIT fall? 
  Accumulation Phase

  • Properly structure your investments.
  • Pay a minimum of income taxes while accumulating wealth.

  Distribution Phase

  • Limit the IRS as your shareholder.
  • Live off your earnings without touching the principal.
  • Allow the principal to outpace inflation and taxes.
  • Create streams of income you can’t outlive.

  Legacy Phase

  • Protect yourself against the Medicaid spend down.
  • At death, transfer as much as possible to your loved ones, tax-free.

  We believe that the secret to having money in retirement is to use the Eischen Financial Group strategic net perspective methods! If you had a serious flaw in your retirement strategies, when would you want to know about it? Right away, of course.
  
  Let us help you soar like an eagle. When can we get together to discuss the next steps?

To schedule a time to discuss your financial future and the possible role of insurance or investments in your financial strategy, contact us at info@retirewithsuccess.com or call us at (614) 221-2211 today!

By contacting us, you may be offered information regarding the purchase of insurance and investment products.