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How To Pay 0% In Taxes

Updated: Feb 19

Written by John Hall

Do you enjoy paying taxes? Most people don't. The good news is that once you take advantage of the information covered here, you'll be able to begin shifting over to the 0% tax bracket for your future.

A few short years ago, I sat front row at an event and was able to hear from and interact with Mr. David McKnight, one of the greatest financial minds I have ever personally witnessed. He is the author of the book, 'The Power of Zero.' The book explains how to get to the 0% tax bracket and transform your retirement.

Millions of people are saving most of their money in a 401k and will have a huge tax bill in the future when they need to take their money for retirement income. At the tip of the iceberg, there are two big problems workers will be facing. Number one, in a tax-deferred 401k, Americans may lose up to a third of their account value paying taxes and fees. Second, what will the future tax rates be when they need to withdraw their money? With the large amount of debt the US has it is far more likely taxes will be higher in the future than they are today.

How can we protect our money?

There are only a few vehicles where we can accumulate tax-free savings. They each have pros and cons and varied levels of liquidity, volatility, safety, and risk.

Roth IRA - Tax free-withdrawals. Low annual contribution limits. Accessible at age 59 1/2.

Municipal Bonds - Typically a fixed rate of return, higher than average savings account yields. Relatively liquid, but not also without various risks. (i.e. Interest rate sensitivity)

Cash Value Life Insurance - No annual contribution limits. Tax-free growth. Full liquidity on your cash value.

*This is a very abbreviated list of features and rules regarding these three tax-advantaged savings vehicles. Click the respective links for more information. It is recommended to research all the specifics regarding these options, as well as consulting with a licensed financial professional before taking any action.

Pick up a copy of The Power of Zero and learn how many people are preparing themselves for the future. Wealth Legion is here to be your trusted resource for financial education and guidance. We only have one shot at building a strong foundation for retirement. The 0% tax bracket is possible. You just need to begin.

With your current plan, how much of your savings is growing and will be distributed from a tax-free bucket? How much of your overall net worth will be lost to future taxes?

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