Two Certainties:
Death and Taxes
It has been pounded
into our minds over the years that the only two certainties are death
and taxes.
But what happens when
the two events happen at the same time?
That is the question
the SaveWealth EAA answers by looking at your current estate, and projecting
your estate growth 10 years from now.
If you asked a thousand
people how quickly their estate grows, you'd get a thousand different
answers. Financial planners typically estimate conservative growth rates
of 5-7% are reasonable over the long-haul.
But how quickly would
your estate grow, given those estimates?
Well, as the EAA demonstrates,
a $1,000,000 estate would easily be worth over $2 million in one decade,
if allowed to grow at a 7% annual rate. The reason is simple: compounding.
Your estate continues to grow on previous year's earnings, much a like
a savings account compounds interest over time. Before you know it, your
estate could mushroom, incurring a substantial estate or capital gains
tax bill.
Think the pending
tax reform proposed by President Bush will abolish all estate taxes? Think
again. Even with current tax legislation on the table, your estate
could be subject to massive capital gains taxes that must be paid in cash,
within 9 months of your death.
We all will die someday.
It's a fact that few address until it's too late. And we all will have
to pay taxes in some form another. The EAA shows you how Uncle Sam plans
on recapturing your estate when you're no longer around, and gives you
the knowledge to prevent that from happening.
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