Warning: session_start() [function.session-start]: open(/home/content/85/5781585/tmp/sess_eae6hoia882j9d7tr4mofad8h5, O_RDWR) failed: No such file or directory (2) in /home/content/85/5781585/html/wp-content/plugins/wp-custom-admin-bar/custom-admin-bar-functions.php on line 8

Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at /home/content/85/5781585/html/wp-content/plugins/wp-custom-admin-bar/custom-admin-bar-functions.php:8) in /home/content/85/5781585/html/wp-content/plugins/wp-custom-admin-bar/custom-admin-bar-functions.php on line 8

Warning: session_start() [function.session-start]: Cannot send session cache limiter - headers already sent (output started at /home/content/85/5781585/html/wp-content/plugins/wp-custom-admin-bar/custom-admin-bar-functions.php:8) in /home/content/85/5781585/html/wp-content/plugins/wp-custom-admin-bar/custom-admin-bar-functions.php on line 8
Tax Free Income Tips | My Money Track

Sitemap

Tax Free Income Tips

Legendary_kissThe direction of future income tax rates is easy to predict. The USA now has $18 trillion dollars outstanding in debt. The last time in our esteemed history, that we had this level of proportionate debt was immediately after World War II, back in 1945.

We bet you a cola that you’ll never guess how high the marginal income tax brackets swelled to pay of that debt. For the next twenty years, between 1945 and 1964 the top income tax bracket in the USA was 91%. Yes, 91%! Worse, for two of those years it actually hit a top rate of 94%.

Could you imagine earning an honest dollar in America and then only legally be allowed to keep $.06 cents? History is doomed to repeat itself.

Today there is $154,000 of debt for each and every taxpayer in America. That’s over $300,000.00 of debt per married couple! http://www.usdebtclock.org/

To get a grip on this ever-increasing debt monster, there are no other options except for income taxes to increase. For baby boomers, this is a real nightmare. About the time boomers begin retiring in masse, tax rates are likely to explode higher. Every penny that comes from your IRA or 401k or 403b is 100% taxable income. And if you foolishly withdraw money from any of these “qualified” retirement funds before age 59 ½, you’ll pay an extra 10% penalty tax on top of your highest marginal tax rate.

Why wouldn’t any one with an IQ over 20 want to see how a tax-free income stream could easily and very affordably be created? In addition, these plans do not have the 59-½ age withdrawal restriction.

No Taxes
What are other benefits of the Tax Free Retirement plan?

  • Unlimited funding amounts – put as much as you’d like in it
  • Can use money for any purpose tax free
  • Could also use funds for accelerated Long term care
  • Use unneeded IRA RMD’s to fund plan – also tax free
  • Provides for heirs and children if you die before using it
  • Your money may grow as much as 15% annually
  • Provides an income stream you cannot outlive

When is the best time to begin any retirement or long-term care plan, regardless if it is tax free or not? Yesterday! The sooner you begin, the sooner you may begin receiving payments for life. And the payments are virtually impervious to claims against you; any legal matter, law suit or creditor claim and even filing bankruptcy will not affect your tax free income stream for life.

More About the Sandwich Generation and more tax-free money

old_coupleIt is typical today for a baby boomer to be responsible for not only their own retirement and the care and education of their children; but also for caring for their elderly parents too! The crush of so many financial needs and burdens on the baby boomer is mentally crushing and often can be physically debilitating. My Money Track offers free tips and little known secrets about sources of tax-free funds for those who may qualify. One such program is the…

Veterans Aid & Attendance Improved Pension

Veterans_dayWhile its name may sound a bit hyperbolic, it is a real and very valuable tool for military veterans and their spouses. It is literally free money set aside many years ago for vets when they require assistance for performing their daily life activities. There are a few “hoops” to jump through but basically; it is available for any wartime veteran with 90 days of active duty during a period of war. And the Veteran need have had “boots on the battlefield.”

If you are asking yourself is it worth the time and effort to make this application, the best answer I can offer you, is that over a 9-year period of both the parents of my best friend being in assisted living facilities, this benefit would have represented over $160,000 in additional income to offset their living expenses. And these funds are also totally income tax free.

The amount of monthly money available to a veteran couple in need of assistance is approximately $2,100; about half that amount for a widowed spouse. Generally, the main reason why someone doesn’t qualify is 1) they give up too easily 2) the forms and VA system are onerous and 3) the vet believes he or she has too many assets to qualify.

We at My Money Track work exclusively with board certified elder law attorneys in Dallas and Ft. Worth, who will walk you and your elderly parents through the process of filing for the special improved VA pension. It is illegal for anyone or any business to charge a veteran applicant for helping he or she to complete the application. A brief meeting with us will determine if we will need to involve outside help or advice.

RETIREMENT-PLANNING

In many cases, the veteran or his/her spouse is able to set up a domestic trust that most of the seniors assets may be transferred into and then apply the next day for the improved pension. We at My Money Track do not offer this service as a method to gain access to you and your families’ money. This is why we refer the case to an unbiased and unrelated legal counsel to guide and help you. The cost of the trust is not free but generally the trust will pay for itself in matter of months.

For those do-it-yourselfers, you may contact the Veterans Administration directly for more information… do not be surprised that the individual with whom you speak will not know about this benefit or be knowledgeable about it. You will have to be persistent in getting to speak with someone who does. Regretfully, this is more common than not.

This process takes approximately 6 – 9 months (possibly longer) for you to receive a “determination of eligibility,” but if your application is approved, the benefit will be retroactive to the date the application was made. I had an assistant who mother passed before receiving approval; yet she received a sizable check from the VA even though her mother was deceased.

Call or contact us for more information… what’s the worse that could happen? You and your parents deserve all the financial breaks you can get.

More Tax Free money secrets for Seniors ( and the wealthy)

When the time comes for you to help and guide your parents with their monthly expenses, you’ll quickly learn that it is more about “cash flow” and less about how much money or assets Mom and Dad have. Ironically, this is the same challenge the largest corporation or the small local business in Dallas or Fort Worth face. Matching your or your parent’s monthly income with their monthly expenses makes all the difference between contentment and complete frustration.

senior-discounts-to-save-seniors-moneyA very obscure local law that every city has is one that allows any homeowner over the age of 65, to defer paying their property taxes until they either a) die or b) sell their home. Why this is such a big deal, you may ask? For those on a super tight budget, wouldn’t you prefer to use your money to buy food or medicine instead of paying DFW local property taxes?

Well, duh… this neat trick isn’t free but it can be a lifesaver for cash and income poor retirees. The taxes you defer will accrue at 8% interest; but this may be offset somewhat by the home appreciating (property taxes will not increase as they are typically “locked” at age 65). And when it comes between eating or paying property taxes, who really cares if it costs a little interest?

For starters, the interest eventually may be income tax deductible and best of all; there will be money to pay the outstanding taxes when the house is sold. But do wealthy, rich homeowners also desire to defer paying their property taxes too? You betcha’ they do!

Read about how one of the wealthiest residents who own one of the largest houses in Dallas, Tx opted to defer property taxes on his mega million dollar abode here.

Nice_homeOne cool wrinkle why even wealthy homeowners often defer payment of their property taxes, is to use the “saved cash flow” to fund an inexpensive or wholesale second to die life insurance policy on both spouses. This type of second to die life insurance is much more affordable than you’d believe and the death benefit is almost always 100% income tax free! If you have a large net worth, by utilizing an irrevocable life insurance trust, you may even dramatically reduce the cost to your heirs of any estate taxes as well.

Remember the cost of deferring property taxes (alas, there’s no free lunch – 8% accrued interest is the Texas rate) but many times the internal rate of return on second to die life insurance will far exceed the cost of interest! So, on one hand you’re deferring taxes and on the other hand your heirs are paying them later with income tax-free dollars.

For more information on these little known obscure cash flow increasing ideas, call or contact My Money Track today!


Warning: Unknown: open(/home/content/85/5781585/tmp/sess_eae6hoia882j9d7tr4mofad8h5, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0