Chris Larsen explains why rising national debt will likely force higher taxes. Tax-deferred retirement accounts let you delay both payment and the tax rate you'll owe, but the math shows you might end up with the same amount whether you pay taxes now or later.
There's a four letter word that's going to guarantee that taxes are going to have to double future and that four letter word was debt.
Yeah he.
Said it has to there is no other option for it to not to but in order them to pay for all the debt that they have they're going to have to raise taxes. So if you're contributing into any sort of tax qualified plan where you're getting the deduction today most people don't realize qualified plans do two things they defer the tax everybody knows that part but they forget the second one is they also defer the tax calculation.
If you invest for 25, 30, 40 years and you save 25% on the front end your tax rate is 25% on the back end you make 10% you're going to have more money if you paid the tax today or if you put in a tax deferred vehicle and pay the tax in the future.
You have the same exact amount of.
Money it's the same amount.
