The Cost of Taxes and Inflation
When you take into account the potential damaging effects of taxes and inflation on your retirement accounts, which of the potential losses concern you the most?
Successfully overcoming possible losses caused by taxes and inflation can be a special challenge faced by retirees during their retirement years. Although this is not a new concern for America's retirees, it may pose a greater looming threat to your retirement success than it has in past generations.
A growing number of Americans are responsible for providing a large portion of their own income in retirement . At the same time they may face the possibility of enjoying a much longer lifespan as modern medical science makes more advancement. The situation may become more challenging if a retirement's success is also largely dependent upon income tax rates remaining at historically low rates.
It may be beneficial to calculate the potential loss from taxes and inflation your retirement accounts may experience. How much of those potential losses do you estimate you can successfully overcome? The answer to this question may help you to identify any possible gaps in your retirement planning.
But isn't my broker taking care of that for me? Print this page to ask him or her for clarification of these questions:
- What rate of TAXES and INFLATION do you forecast for my investments to overcome?
- How often and when do you measure my progress?
- How will my retirement income be impacted if we were to experience an increase in taxes during my retirement?
- What steps are being taken to minimize the risks of an increase in taxes?
Using an approach that integrates the possible damaging effects of taxes and inflation may help you to avoid the challenge of a retirement's success becoming largely dependent upon income tax rates remaining at historically low rates.