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The Number That Means More Than Your Balance!
- Davis Oliver
- Jan 1, 2025
- 4 min read
Please Click the Video to Watch This Important, Short Message
In this week’s Taxes Saved Reviews, I teach that there is still time to save taxes for 2025 but you have to act, now! Unfortunately, what many people miss is the number that means more than the balance of all the money they’ve saved towards retirement. This is especially true if most of that money is saved in tax-deferred accounts such as 401(k)s and IRAs.
The number that matters is not the size of your 401(k) or IRA. It’s not the growth rate on your investments. The number that matters most is the amount you actually get to keep after taxes. Despite its importance, this is a number that most people never stop to calculate.
Every week, we hear from people who are shocked to discover how much of their retirement savings isn’t actually theirs because so much of it really belongs to the IRS. Whether you sold real estate, a business, did a Roth conversion (or are planning to do so) the tax impact can be staggering.
That’s why we provide a Saving Tax Optimization Plan (S.T.O.P.) Analysis, a custom analysis that’s tailored to your individual situation. Some clients are locking in savings for 2025 while others are already scheduling meetings in early 2026 to get a head start for next year’s taxes. But, as I often say, the sooner you act, the more you keep. Remember, every day you wait is another day of tax deferral and another day where Washington gets more of your money.
A Current Case: $400,000 = $2.6 Million in potential lifetime Taxes
One of our recent Taxes Saved Case of the Week studies featured a client couple in their late 40s. They had about $400,000 in retirement savings sitting in traditional 401(k)s and IRAs. Here’s what they learned:
By doing nothing and simply deferring the taxes, their $400,000 turns into a $2.6 million tax liability over their (and their children’s) lifetimes (based on 8% growth at a 24% federal & state tax rate.
Our wealth team increased their return growth target to 10%. They wanted to know the impact if tax rates climb to 35%. At 35% their lifetime tax liability jumps from $2.6 million to $8.1 million!
Imagine, a $400,000 current balance, without adding one more dollar saved, could potentially produce over $8 million of lifetime tax. Their focus turned from rate of return to tax savings!
This isn’t just a growth numbers game. This is your retirement and your legacy. This is the difference between living with more tax-free income and leaving more wealth to your children versus living and leaving a ticking tax time bomb. It’s not just about growing your money; it’s also about protecting your savings. Their strategic tax savings plan has turned a potential $8 million tax time bomb into a potential tax-free $8 million for more lifestyle and legacy!
After meeting with us, this couple discovered they could:
Access employer plans for Roth conversions using offsets before age 59.5.
Use deductions to offset conversion taxes.
Prevent their retirement from becoming full of taxes.
Avoid having their children inherit a crushing tax burden.
Our clients know:
Returns matter, but tax avoidance matters more.
The sooner you act, the less tax you and your family will pay.
Doing nothing is not a safe solution.
Doing nothing is a really a decision to hand more money over to the IRS.
As one client told us: “I didn’t know what I didn’t know. But now that I do, I’ll never go back.”
Is Your 401(k) and/or IRA an IOU to the IRS?
Our team of proactive, tax-savings focused and experienced CPAs works to show you the “tax risk road” you’re traveling and the reroutes you can take to protect yourself. You’ve worked too hard for your savings. Don’t gamble on tax rates, don’t gamble your wealth to Washington and don’t gamble on your legacy. The time to act is now!
Steps to Request Your Saving Tax Optimization Plan (S.T.O.P.) Analysis:
Visit TaxesSaved.com – Review the insightful case study webinar that shares two impactful client case studies showing how to save thousands of dollars in taxes.
Request your S.T.O.P. Analysis – Saving Tax Optimization Plan.
Select a Date and Time – Be specific! Choose a date and time to speak with us so we can assess your tax-saving opportunities.
Show Up and Learn Your Tax Risk – We’ll guide you step-by-step through exactly what to do to stop overpaying the IRS and start protecting your savings.
Don’t gamble your retirement on tax rates and don’t let the IRS decide how much of your savings you get to keep. This is your money, your retirement and your legacy. Go to TaxesSaved.com today, watch the free webinar and request your personalized S.T.O.P. Analysis.
Keep in mind that the balance you see isn’t the number that matters, it’s the after-tax number. Let us help you protect the number that matters. There is still time to save taxes for 2025 but you have to act.
Note: We serve Baby Boomers and Retirees all over the Unites States. We have an efficient, supported process to meet online, as we have been doing for over 20 years. Our online meetings are private, the access is restricted and we never share our meeting link with anyone who’s not a part of the meeting.
Chuck OliverWealth Strategist | Best-Selling Author
We help Baby Boomers and Retirees thrive in retirement through a clear retirement road map that provides market correction and tax protection to optimize income and assets!
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