Scott Farnsworth, J.D. is an Estate Planning and Tax Attorney, Financial Advisor, and expert on tax-free retirement planning. He scours the tax laws and legal regulations looking for planning opportunities that most people overlook, including many financial advisors.
The TRA is just one of several powerful but little-known tax-free retirement strategies we share with our clients. We’d love to work with you personally to design a safe and secure tax-free retirement plan that fits your current lifestyle as well as your long-range plans. If retirement planning is important to you, let’s chat about how we can help.
We are concerned for the many future retirees we meet who have all their eggs in their 401(k) basket. This is a risky practice. As you can see, many financial experts have spoken out about the dangers of 401(k) plans. They warn American workers about excessive (but almost always hidden) fees, the extreme amount of market risk exposure, the entangling and constrictive rules and regulations, and especially the huge tax bills 401(k) participants will face when they retire. Our concern is that 401(k) plans and their cousins like IRAs and 403(b) plans are a train wreck about to happen.
You know you shouldn’t gamble with your future, but you need to earn strong, stock-market-like returns on your retirement funds. In a TRA, your money can earn great upside returns with no stock market risk. You’re never exposed to the downside of the market. You can never lose money when the stock market has a “correction” or even a major meltdown like in 2001 or 2008.
You’ll get more money out of the TRA and it will all be tax free. With an IRA or 401(k), you’ll pay tax on every single penny, at your highest marginal tax rate. You may also be hit with substantial IRS penalties, as high as 50%. A large chunk of your retirement savings will go straight to the IRS. When the IRS is finished with you, your 401(k) will look like a 201(k).
You can use the money in your TRA on your own terms, not the IRS’s. You don’t have to wait until you’re 59 ½ to get your money out. You can retire early if you want to. You can use your TRA to pay for a family emergency in your 40s or your children’s college in your 50s. And when you’re 70 ½, you won’t be forced to take out money you don’t need.
Watch this video to see why Scott decided to focus on helping clients retire tax-free:
While an IRA or 401(k) may be right for some, many of our clients are much happier with an ingenious strategy Scott calls the “TRA,” or Tax-Free Retirement Account. The TRA is a much smarter approach for a person who wants safety, flexibility, and tax-free income in the future.