The Advantage of After-Tax Saving and Investing

P4P046-PayTodayOrPutAway

To pay, or not to pay, that is the question on today’s episode of the Prosperity Podcast. Todd Strobel and Kim D.H. Butler respond to a client question about how to approach and handle money in a pre-tax account against when it’s in a post-tax account. Kim and Todd explain the issues that arise with the 401(k) and IRA realms. They offer alternatives to handle IRA money, as well as, options outside of traditional thinking, which include bridge loans, life settlements, and life insurance.

 

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Show Notes:

[0:00] Prologue

[0:19] Intro

[0:31] Overview

[1:16] Pre-tax vs. Post-tax Money

[4:11] ‘Net’ It Down

[5:23] Explaining the Stretch IRA

[7:41] Split-Up Your IRA

[10:04] Shift Your Thinking

[12:00] Leaving Money for a Charity

[13:57] Money in a Tax-deferred Account

[15:32] Converting to a Roth IRA

[17:53] Summary

[18:31] Financial Planning Has Failed

[18:50] Wrap-Up

[19:13] Outro

Tweetables:

The actual dollars after-tax on a pre-tax account are the exact same actual dollars that are available after-tax on a post-tax account. Click To Tweet 401(k) fees are high and they create lost opportunity. Plus, you have the issue of what to do with the account when you’re done with it. Click To Tweet You keep control by paying the tax today and doing after-tax saving (life insurance) and investing (bridge loans, life settlements). Click To Tweet

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