Baby-Boomer Blunders

TAXES – The Great Wealth Destroyer

Warning: Illegal string offset 'keywords_time' in /homepages/19/d299964829/htdocs/TheFamilyBankingPlan/wp-content/plugins/internal_link_building-v-2-1/internal_link_building.php on line 118

Taxes Can Greatly Affect Our Ability to Preserve Wealth

Understanding how taxes impact your ability to build wealth is essential. While it would be impossible to operate our country without some level of taxes, it is in our best interest to reduce or legally avoid them wherever possible.

In order for you to have an idea about where taxes might be going in the future you need to know where tax brackets have been in the past.

This graph is the history of the marginal tax rates from 1913 when the income tax code was first implemented through 2009.

As you can see, the initial tax bracket was only about 7% and it applied to a very small segment of the population. Tax brackets increased dramatically around 1917 and stayed above the 70% level for several years. The reason for this dramatic increase was our country’s involvement in the First World War. Taxes were increased to help fund the costs associated with that war.

While taxes did drop after the war they did not go back to 7%, they only fell to around 25% for the next few years. Beginning in 1931 tax rates were on the rise and remained higher for the next 30 years as the country struggled to pay for the welfare projects of the great depression and World War II.

It is important that you understand that the tax graph you are looking at is a graph of the highest marginal tax brackets. For example, in 1943 and 1944 the marginal tax brackets reached an all-time high of 94%. That doesn’t mean that people had to give the government 94% of their income, it means that, depending on how much they earned, the amount above a certain level would be taxed at 94%. The point in all of this is that for approximately 60 of the last 90 years, the highest tax brackets have been 50% higher.

Tax brackets have been relatively low for the last 20 years, in part this is a result of the government eliminated a number of our deductions. The past could be a sign of the future as it pertains to taxes.

What Does This Mean for Our Future?

We are looking at a financial future in which our government will have to fund a number of entitlement programs, such as Social Security and Medicare being the largest. These programs are going to require a significant increase in taxes for a very long time, primarily due to the significant number of Baby Boomers who have started reaching retirement age.

Now that you have a better understanding of tax brackets and have seen the history of what the government has done when they need money you can begin to predict what will be happening to us from a tax standpoint.

How Can Family Banking Plan™ Help?

First of all, we bring these statistics up not to scare you, rather to inform you of what may happen very soon in this country. Now more than ever, it is vital that you understand the impact of this great wealth destroyer and protect your assets from as much of this as you can. There are strategies that you can apply in your life that are safe and legal ways for you to guard yourself against excessive taxation.

The Family Banking Plan is one such way, we are very aware of the taxation each of us faces and can help you understand ways to protect your assets.

For more information please accept our FREE Cash Recovery Analysis to find out how we can help you keep your hard earned money!

Financial Fortune Telling WORKS!

Warning: Illegal string offset 'keywords_time' in /homepages/19/d299964829/htdocs/TheFamilyBankingPlan/wp-content/plugins/internal_link_building-v-2-1/internal_link_building.php on line 118

How The Family Banking Concept will make your Financial Future predictable…

What if you knew what was going to happen in this country during the next 3,000 days? With this knowledge you would be able to make better decisions about where to put money. You would understand why creating your own bank without taking on any risk can such a great financial tool. If we could actually predict the future based on facts we have available to us, how important is that for you to know?

Good news, we can actually make some predictions based on the demographics in our country. Between the years of 1946 and 1964, 80 million people were born. This generation is known as the baby boomers. Starting January 1 of 2010 the first baby boomer turned 65 and they will continue to do so at a rate of 10,000 per day!

What does this mean and how does this tell us anything beneficial about our financial future?

Look at this in CONTEXT, there are already 38 million retirees (more than we have ever had) in this country drawing Social Security and Medicare benefits. Over the next 20 years we will easily see that number increase to 50-60 million people. Where do we get the money to fund Social Security and Medicare?

According to numerous government sites, our unfunded liabilities for these future programs look something like this. 17 Trillion, yes TRILLION dollars in Social Security benefits, 35 trillion dollars in the drug prescription program for seniors and 75 trillion in Medicare costs! These numbers are scary and changes to these programs to make them work are not happening quickly enough.

This is not to scare you but to inform you that we can predict certain things about future economy based on demographics. We can show you how to make wiser choices with your money that will create tax benefits to you and provide you with a safe place to store money that is not subject to the loss the market WILL have.

“Knowing how to become your own banker…”

Knowing how to become your own banker can provide amazing peace of mind in the difficult times ahead. Learning the truths taught by The Family Banking Plan advisors is life changing when you consider where these demographic trends are going to lead.

Consider what knowing about demographics might mean to your children and grandchildren. Just imagine if you could outline clearly what the long term trends were for the next 20, 30 or even 50 years. Imagine how you might be able to guide your children? What if you and your entire family knew that by using the infinite banking concept, you would be completely in control of your own money, never again at the mercy of the traditional banking system.

If the next 3000 days is going to be anything like the government is admitting, we believe that you need a back up strategy, and part of that back up strategy is creating your Family Banking Plan.