Financial Tip #4: Pay Taxes Now, While They’re Low

Recognize that taxes are very likely to go up in the future and add some tax efficient strategies to your retirement plan. Current tax rates are low. In the past the federal tax rate has been as high as 94%.

With our federal deficit over 18 trillion dollars and unfunded entitlement promises close to 100 trillion, where is the funding going to come from to get this in control? You can’t fix the deficit, Social Security, and Medicare, but you can be proactive and use tax efficient strategies to protect against the threat of higher taxes.

Do you contribute to a Roth IRA? Even better does your employer offer a Roth plan which would allow you to contribute $18,000 for 2016 and an additional $6,000 if you are age 50 or over.