“President Biden will propose a $6 trillion budget on Friday that would take the United States to its highest sustained levels of federal spending since World War II, while running deficits above $1.3 trillion throughout the next decade,” the New York Times reports.
Consequences? Every year, the federal government has to confiscate huge sums in taxes just to cover the annual interest payments on the national debt. These annual payments—just the interest on the debt—would double over the next decade under Biden’s proposal. Even if interest rates stay low, the payments will total trillions in the near future that will require tax increases. And if interest rates do tick up, these annual payments will quickly become unimaginably large.
Looking for tax free income in retirement. There aren’t many options. Roth IRA, Roth 401(k), Municipal Bonds and Cash Value Life Insurance such as Indexed Universal Life(IUL). IUL policyholders accomplish two very important things when they purchase an IUL policy. They provide a guaranteed death benefit for their surviving loved ones and they accumulate wealth than can become a tax-free income stream during retirement.
Hat tip Foundation for Economic Education/FEE.org