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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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For 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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