can receive Social Security will increase , as they have recently proposed in France . Then , there will be a means test . If one does not “ need ” Social Security ( by having too high a net worth or other income as determined by Congress ), the potential recipient will not receive it .
Next up on my list of predictions has to do with ROTH IRAs . For some time , many taxpayers have had the option of having a ROTH IRA instead of a traditional IRA . The plan was to pay taxes now and get it over with . The ROTH IRA would be allowed to grow without taxation as well as when the recipient withdrew money from the ROTH IRA ( no penalties if the owner is over 59 ½ ); however , ROTH IRAs have grown tremendously in recent years , as
many taxpayers believed tax rates would increase and the thought was to pay the taxes when tax rates were less . With ROTH IRAs becoming a large part of “ taxfree ” growth , it is my belief that Congress will not just outright start taxing them , as this would fly in the face of what was originally proposed . The way that Congress will effectively get their tax revenue is to do what they did with Municipal Bonds as explained earlier .
ROTH IRA income ( possibly even the value of the assets in the ROTH IRA ) may influence the taxability of other income . This would be a sly way of not directly taxing ROTH IRAs but be structured in such a way for the
I am not against ROTH IRAs , but my predictions have led me to believe that it is best to save taxes now ( traditional IRAs , 401 ( k ) s , etc .) wherein the taxpayer saves money immediately , knowing there is a 100 % chance of no current tax . government to collect more taxes . This same strategy may also be applied to other deferred income that is not currently being taxed , such as single premium life insurance , whole and universal life insurance and some annuities .
I am not against ROTH IRAs , but my predictions have led me to believe that it is best to save taxes now ( traditional IRAs , 401 ( k ) s , etc .) wherein the taxpayer saves money immediately , knowing there is a 100 % chance of no current tax . In addition , the taxes that are not currently paid can be invested and increase the taxpayer ’ s net worth . As the saying goes , A Bird in the Hand …
MEET EDWARD BROWN
Edward Brown currently hosts two radio shows , The Best of Investing and Sports Econ 101 . He is also in the Investor Relations department for Pacific Private Money , a private real estate lending company .
Additionally , Edward has published many articles in various financial magazines as well as been an expert on CNN , in addition to appearing as an expert witness and consultant in cases involving investments and analysis of financial statements and tax returns .
Edward Brown , Host The Best of Investing on KTRB 860AM The Answer on Saturdays at 8pm and Sports Econ 101 on Saturdays at 1pm on SiriusXM channel 217 . ebrown1111 @ aol . com
51