In 2035, the U.S. will have more elderly than children. For the first time ever, there will be more people aged 65 and older alive than under 18, the Census Bureau predicts. The projection is based on the surge of baby boomers becoming senior citizens and fewer births over the past decade. The U.S. population is growing, set to hit 355 million by 2030 and 404 million by 2060. When people get to these ages (65+) they typically start to enjoy all the social promises that were made to them: medicare, social security, etc. They also will start to live on the retirement savings that they have accumulated through 401ks, pensions, IRAs and more. Most of these vehicles are of course taxable.
If we will have so many people retired how will we keep up with the demand? Do you think there’s a chance that taxes may go up to cover these programs? It is vital to have a retirement plan that doesn’t just focus on just rates of return, but also has a plan to overcome what could be the biggest loss in your portfolio… taxes.