In the past fifty years, there
have been nearly 50 major tax revisions. The income and estate
tax laws have become so complex; it seems impossible to keep up
with all the changes. That is why you need a financial management
professional like J. Abels, President of Family Estate Planning.
To illustrate the impact taxes have on your
investments, let’s assume an exaggerated return of 100%
on your investments each year for 20 years. Without taxes, just
one dollar would grow to over $1,048,000. Now
we’ll use the same assumptions of a 100% return each year
for 20 years. But, this time you pay 28% tax on the gains each
year. With the after tax return of 72%, one dollar would grow
to only $51,353.
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illustrative purposes only. This does not reflect the performance
of any specific scenario. You may wish to consult your tax
professional regarding your individual circumstances. |
The only difference between these two examples
is taxes, taxes, and more taxes.
Some have the impression that it is somehow
cheating the government to reduce their taxes, but according to
the U.S. Supreme Court, “Any one may so arrange
his affairs that his taxes shall be as low as possible, he is
not bound to choose that pattern which will best pay the Treasury;
there is not even a patriotic duty to increase one’s taxes.”
The professional team members at Family Estate
Planning work hard to reduce our client’s taxes because
we realize that it is not how much you make, but how much you
keep that counts!
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