The Silent Erosion of Your Wealth: How Taxes Can Steal Your Retirement Dreams

Imagine this: You’ve worked your entire life, diligently saving for retirement. You’ve done everything right—maxed out your 401(k) or Traditional IRA, invested wisely, and now you’re ready to enjoy the fruits of your labor. But as you begin to withdraw your savings, something unexpected happens. The comfortable retirement you envisioned suddenly seems out of reach.

What went wrong?

The $100,000 Illusion: A Simple Withdrawal, A Complex Reality

Let’s take a closer look. You’ve saved $100,000 in your 401(k) or Traditional IRA. It’s a nice, round number—easy to visualize and even easier to dream about. You might be thinking, “That $100,000 is mine. I’ve earned it, and now I’ll use it to enjoy my retirement.”

But here’s where the illusion begins to fade.

When you withdraw that $100,000, you’re not just pulling money out of an account. You’re triggering a series of tax obligations that can drastically reduce the amount you actually get to keep. Depending on your total income for the year, that $100,000 could push you into a higher tax bracket, where a significant portion of your withdrawal goes straight to the IRS.

?? Curious? Let’s break it down.

The Tax Pitfall: How Much Do You Really Keep?

Let’s say you’re in the 22% federal tax bracket in 2024, and your state income tax rate is another 5%. That’s 27% of your $100,000—gone.

• Federal Taxes: $22,000
• State Taxes: $5,000
• Total Taxes Paid: $27,000

?? That leaves you with just $73,000. A far cry from the $100,000 you thought you had.

But wait, there’s more.

If your withdrawal bumps you into a higher federal tax bracket, the amount you lose to taxes could be even greater. And don’t forget about Social Security benefits—if your total income is too high, up to 85% of your Social Security could be taxed as well.

?? Did you expect that? Most people don’t.

The Big Reveal: Taxes and Inflation, A Double-Edged Sword

Now, let’s add another layer to this picture—inflation. The money you withdraw today is worth more than the money you’ll withdraw ten or twenty years from now. As inflation eats away at the purchasing power of your dollar, that $73,000 might only feel like $50,000 in a decade.

?? Feeling uneasy yet? You should be. This is the reality many retirees face, often too late to make significant changes. But it doesn’t have to be your reality.

Applying the Lesson: How Will Your Retirement Hold Up?

Now, imagine if you had $200,000 or $500,000 saved in your 401(k) or Traditional IRA. The impact is even more staggering. The more you’ve saved, the more you stand to lose—not just to taxes, but to inflation as well. The comfortable retirement you’ve envisioned might be eroded by forces you didn’t fully anticipate.

But here’s the important question: What can you do about it?

Taking Control: Protecting Your Wealth from Erosion

You don’t have to be a victim of the tax pitfall. By understanding the true impact of taxes on your retirement savings, you can start making smarter decisions today.

Consider this:

• ?? What if you could restructure your retirement savings to minimize taxes?
• ?? What if you could ensure that every dollar you’ve saved works harder for you, instead of being siphoned away by the IRS?
• ?? What if you could safeguard your wealth against the twin threats of taxes and inflation?

? Imagine the peace of mind that comes from knowing you’ve taken steps to protect your future.

Unity Wealth Strategies: Your Partner in Financial Security

At Unity Wealth Strategies, we understand the anxiety and frustration that come with planning for an uncertain future. We’ve helped countless individuals just like you navigate the complexities of taxes, retirement, and wealth preservation.

We believe in more than just numbers—we believe in people, in their dreams, and in the lives they’ve worked so hard to build. We’re here to help you protect those dreams, ensuring that your retirement is as comfortable and secure as you’ve always hoped.

We focus on:

• ? Safety: Creating strategies that protect your wealth from unnecessary taxes.
• ? Security: Ensuring that you retain more of your hard-earned money.
• ? Stability: Providing financial plans that offer peace of mind, even in an unpredictable world.

You’ve worked hard to build your wealth. Let us help you keep it safe, so you can enjoy the retirement you’ve always dreamed of—without worrying about what you’ll lose to taxes. You'll have a retirement you can count on, but most of all, you'll have Peace of Mind.

Let’s talk about how we can help you take control of your financial future. After all, every dollar counts.