How much have you allocated for Uncle Sam out of your IRA and 401K? Did your internal voice just say $0? If so, that little voice is misguided!

When you elected to defer income into your traditional IRA and 401K, you decided to partner with Uncle Sam. That means when you make money, he makes money!

Here’s the problem — you have no idea what cut he’s going to take when you decide to take your cut. These dollars have never been taxed. And with just a stroke of a pen, Uncle Sam can increase his share and reduce yours.

In the time it took me to review the U.S. Debt Clock — less than a minute, in order to snip the picture below and paste it on this website — the U.S. National Debt went up by $1 million.

If you’ve never seen this site, you should. You’ll find it either incredibly sobering or it will have you reaching for a drink … maybe two!

This is a live clock showing the U.S. Government debt changing in real time. But here’s the kicker … this number does not include total unfunded Social Security and Medicare promises.

What’s the solution? Higher taxes are inevitable — it’s just a matter of time.

Hitting the $31 Trillion mark is a reminder of just how high our national debt is and just how much we’ve been borrowing.

That’s about $92,000 for every single person in America!

Someone is going to have to pay that money back and — spoiler alert — it has to be paid back with tax revenue.

At some point, Washington lawmakers are going to need more of your money in taxes — when they do, the money in your IRA and 401K are likely to be included.

How much have you allocated for Uncle Sam out of your IRA and 401K?
Did your internal voice just say $0?
If so, that little voice is misguided!

When you elected to defer income into your traditional IRA and 401K, you decided to partner with Uncle Sam. That means when you make money, he makes money!

Here’s the problem — you have no idea what cut he’s going to take when you decide to take your cut. These dollars have never been taxed. And with just a stroke of a pen, Uncle Sam can increase his share and reduce yours.

In the time it took me to review the U.S. Debt Clock — less than a minute, in order to snip the picture below and paste it on this website — the U.S. National Debt went up by $1 million. If you’ve never seen this site, you should. You’ll find it either incredibly sobering or it will have you reaching for a drink … maybe two!

This is a live clock showing the U.S. Government debt changing in real time. But here’s the kicker … this number does not include total unfunded Social Security and Medicare promises.

What’s the solution? Higher taxes are inevitable — it’s just a matter of time.

Let’s put this into perspective. What exactly does $30 Trillion of U.S. debt actually look like in stacks of physical cash?

When it comes to forecasting future tax rates, you need only look at two things: 1) past tax rates — the highest marginal rax rate was 94% in 1944 and 1945, and 2) the national debt.

A lot of us mistake “tax-deferred” for “tax-free.” Tax deferral means not paying federal income tax now — but, by waiting, you also defer the tax calculation. Let’s say the top tax rates go up to 50% — you’ll have half the money you thought you had!

When rates go up, the value of your retirement savings go down.

How much of your hard-earned savings are you willing to lose?

Hitting the $31 Trillion mark is a reminder of just how high our national debt is and just how much we’ve been borrowing. That’s about $92,000 for every single person in America! Someone is going to have to pay that money back and — spoiler alert — it has to be paid back with tax revenue.

At some point, Washington lawmakers are going to need more of your money in taxes — when they do, the money in your IRA and 401K are likely to be included.

When it comes to forecasting future tax rates, you need only look at two things: 1) past tax rates — the highest marginal rax rate was 94% in 1944 and 1945, and 2) the national debt.

A lot of us mistake “tax-deferred” for “tax-free.” Tax deferral means not paying federal income tax now — but, by waiting, you also defer the tax calculation. Let’s say the top tax rates go up to 50% — you’ll have half the money you thought you had!

When rates go up, the value of your retirement savings go down. How much of your hard-earned savings are you willing to lose?