If you’re setting aside money for retirement, it’s good to know there are four phases of retirement planning:
– Contribution
– Accumulation
– Distribution
– Transfer
As you consider different financial vehicles, it’s also wise to understand how taxes impact each phase.
Take a tax-deferred annuity, for example.
With this vehicle, you put in after-tax money, then your money accumulates tax-deferred, but when you start taking out income, it’s now taxable LIFO—last in, first out.
This means all the interest you’re earning is taxed first.
Then, it’s taxed again when you die and it’s transferred to your heirs.
There’s a better way to set aside money for retirement, with even more tax advantages.
Learn about it in my book, “The LASER Fund.” Click on the link or visit laserfund.com to order your free copy – contribute a nominal amount towards shipping and handling, and I’ll cover the rest. #shorts
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