Do you have some kind of investment vehicles you? Now Tax, Tax Later, and tax Never? Wow, Tax Never? I will return to this Tax Never come later. Like me, I never learned how to invest and increasingly rich school. But I always wanted to know why people so well, and some people are not? I finally found my answer after two years of working in a Prestige Financial Firm. The answer is, “to know how to store, manage, calculate, use the Tax Law is to your advantage, and measures to plan ahead to build the passive income makes the difference.” There are many large vehicles to drive, and today I’m going to focus on passive income investment vehicles that you can sign up from the traditional banks and investment companies. So, what’s Tax Now? Tax now means that all earn you make of investment instruments should be taxed each year. Everyone must be earning to the IRS report on their tax returns. These vehicles include both the control, storage and CD accounts that are interest generates for you. All gains and generate dividends from stocks and mutual funds; in addition, income from bonds and Treasuries.
What is Tax Later? All the money that people put into this vehicle’s Pre-Tax. Which means that this money is never taxed by the IRS. Sounds pretty good huh! Yes, the downside of this vehicle is that people have to wait for 591/2 years old to take it out. There is a 10% tax penalty + Income Tax penalty for taking money out for 591/2, unless you are taking money out to buy your first home you still have 10% VAT. Also, people need to take out money before they 701/2, because the IRS can not wait that long for your money. All the money you after 591/2 is subject to “Income Tax”, depending on how much you get out. So, what are the investment vehicles in its category? These are 401K or other qualified plans, IRA, September IRA (self-employed), annuities and certificates of deposit. The only factor to think about is, “Is Tax is comparable increase or decrease in the future with Today’s Tax Rate?”
Last, what’s Tax Never? Tax not mean people will never charge getting all benefits when they make money from this vehicle. Well technically the money there after charge. Just like money in the bank after taxation. I have a lot of people use this vehicle to build their wealth, and depending on the some investment vehicles do not have to wait until 591/2 to take out the money, not to pay taxes on any gains it.
Sounds very good to me, these vehicles are ……… ….. are you ready? Okay, there are only three vehicles in this category never Tax. One is Roth IRA Roth 401k, and the other is Cash Value Life Insurance (if you’re interested, check out or Variable Equity Index Life Insurance). Both Roth IRA and Roth 401k have 591/2 rule and restriction contribution, depending on your annual income. Roth 401k contact your business, the law just passed in 2006, so do not be surprised your business in the traditional 401K.
Remember, no one size fits all! Not everyone is suitable for all cars. It requires an understanding of how the Tax Law works for all investment, how much time you have, what is your goal, what is your risk tolerance, and what are your financial goals, and more. Every detail counts and makes a big difference in your financial life. Please do not buy bunch of cash value life insurance, or put more money into 401k after reading this article. It is very important for you to consult with a financial planner or adviser licensed by the government. Please, do not talk to your financial plan whose financial situation is worse than yours. Now, I wish you all success in building your massive passive income trip. Welcome to any questions and feedback.