The Advantage of After-Tax Saving and Investing


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.


If you would like the opportunity for us to answer your question on the show or to be a guest on our show, be sure to keep sending us questions and reach out to us!

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


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



Get Your Prosperity Accelerator Pack Today! Sign up to receive our ebook, Financial Planning Has FAILED as part of your free Prosperity Accelerator Pack now.

Subscribe to the Prosperity Podcast

Subscribe with iTunes   stitcher64x64   Subscribe with RSS

There are multiple ways to subscribe to our podcast. Pick your favorite above: iTunes, Stitcher, or RSS feed. You can also listen to past episodes on our website.

Contact us to get your money working harder for you today!