How do you multiply your net worth?
Let the government help. (Stay with me here!…)
Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement…
Example. You invest $1,000 a month in your retirement. You are in the 40 percent tax bracket (combined federal and state), and you earn 10 percent on your investments. At the end of 30 years, you have $1.58 million in after-tax spendable cash, which comes from (in round numbers):
If you had no government help on the taxes and invested $1,000 a month in an investment that earned 10 percent (6 percent after taxes), you would have a little more than $950,000.
Winner. The retirement plan wins by $630,000—after taxes ($1.58 million vs. $950,000).
Okay, that’s the big picture. It tells you that tax-advantaged investing multiplies profits. So, do it!
That’s a WHOLE LOT OF MONEY potentially left on the table.
Let’s talk about it and get you started!