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The Taxation of Pensions: A Shelter Can Become a Trap
Pastor Bob Jones
Pensions are widely thought to be attractive tax shelters which encourage saving for retirement. They allow people to save before-tax dollars and to compound investment returns without current taxation. However, the taxation of pension assets as they are distributed in retirement or as they pass through an estate may turn the shelter into a trap, at least for large pension accumulations. Pension distributions can face marginal tax rates as high as 61.5 percent; pension assets passing through an estate can face virtually confiscatory marginal tax rates between 92 and 99 percent. The analysis of this paper shows the circumstances under which these extraordinarily high marginal tax rates will be encountered. They are not limited to the rich. In fact, people of modest incomes who participate in a pension plan over a long career may face such rates. The paper presents a comprehensive examination of the taxation of pensions and discusses the optimal responses of households to the incentives created by the tax system.
~John B. Shoven
The Taxation of Pensions: A Shelter can Become a Trap: http://ideas.repec.org/p/nbr/nberwo/5815.html
Also, you will absolutely LOSE 50% of your money to "Hidden Brokerage Fees" over time (example, $500,000 now over 30, or 40 years of savings/investments, but it should have been $1,000,000, but FEES ROBBED YOU!)
Also, you could LOSE a Great percentage of your money in a Market Crash/Correction/Dump, etc. just when you need the money to retire on!
So with MARKET LOSSES (REALLY GAMBLING LOSSES) & HIDDEN BROKERAGE FEES (REALLY THEFT) & CONFISCATORY TAXES & ESTATE TAXES (MORE & BIGGER THEFT), WHY ON EARTH WOULD ANY INTELLIGENT PERSON PUT THERE HARD EARNED MONEY & LIFE SAVINGS/RETIREMENT IN THE GOVERNMENT PENSION SCAM GAMES & THE SECURITIES MARKET GAMBLING GAMES???
I was a Sr. 7 Securities Broker & Sr. 3 Commodities Broker & a Sr. 65 RIA Registered Investment Advisor many years ago & I know of what I speak!
The inside joke that Brokers use to tell is; "The House made money & the Broker made money, so 2 out of 3 ain't bad!"
That's why I left the business as I couldn't put people in that CRAP in Good Conscious!
You have been told!
Pastor Bob Jones
RECOMMEND in order;
1. Guns
2. Ammo
3. Long Term Storage Foods
4. Portable Water Purifier Filters
5. Debt Free Country Self Sufficient Farm Lands
6. Complete Survival Supplies
7. Silver
8. Gold
If you want (Not need) "Paper Assets",
1. Whole Life Insurance Policies (They are THE BEST paper Asset)
2. Fixed & Equity Indexed Annuities (They are the 2nd BEST paper Asset)
3. Swiss Francs is the BEST paper currency (Swiss Life & Annuities in Swiss Francs therefore would be the BEST paper Assets)
I don't ever recommend paper assets, but people never listen anyway!
Nov. 22, 2010