OUR APPROACH

How much of your retirement savings is yours?

Since 1986 we've been taught to put as much money into tax deferred investments as possible. At the time, it seemed logical to avoid taxes now even if we had to pay them later.

But since the government sets tax rates on these tax-deferred vehicles, who really controls how much of that money will be there in retirement? That is, will taxes be higher or lower at retirement?

Chart of differing tax rates

Consider this: When Social Security was created, workers started receiving benefits at age 65. But at that time, life expectancy was only 62 years. That means 42 people were paying into Social Security for every 1 person taking money out. Since then, life expectancy has risen and Americans can now start withdrawing at age 62.

Regardless of short term policy changes, the only way to fund government programs, like Social Security, and pay down the national debt is to increase income taxes. And at the end of the day, increased tax rates mean less money for your retirement years.

"What if everything you've learned about saving for retirement is wrong?"

Tax Rate Changes Over the Years

Take control of your financial future

Don't get us wrong, investing in financial products that perform well over time is important as is diversification. But if you diversify by investment asset class, why wouldn't you diversify by tax class; e.g. pre-tax, post-tax and tax free? Then, if taxes are higher in the future, you're diversified. 

But even if tax rates don't increase at retirement, deductions will largely be gone and every dollar of taxes will compound the rate at which the retirement nest egg is diminished.

Tax Deductions & Credits in Retirement Years

Graphic of tax deductions in retirement years

Prevail's investment vehicles focus on retaining more of the accumulated wealth by structuring products that have traditionally received favorable tax treatment from the IRS.