About: George Kiratzopouios

I started selling insurance products in 1967 in NYC and moved to Florida in 1993 as a financial advisor. I provide my clients protection and financial stability. They all receive a guaranteed growth of their money with no risk. During these hard economic times many people are concerned about taxes and possibly outliving their money.  My specialty is providing enough income for my clients insuring that they will never face that problem.  If you are not satisfied with your financial picture presently. please give me a call and I will do my utmost to assist you. There is no charge for my service. I can assist you with your IRA, 401K, etc.

If you want to maintain control of your money. reduce taxes, receive a better return for your investment and are upset with mutual funds, CD rates and your present broker/financial advisor, let me help. I can be reached at 321-446-0646

Helping Preserve Your Retirement Assets
by Taking Smaller Distributions

You own two pots of money: The money that has already been taxed (lets call it “regular money”) and the money that has not been taxed (let’s call this “retirement money” such as IRA, 401(k). 403(b). etc.). When you spend a dollar of regular money, the cost to you is exactly $1. When you spend $1 of retirement money, cost to you could be as much as $1.54¹(1/.65) because you may have to pay off federal income tax on the amount you withdraw. Therefore, if you want to reduce your taxes, consider not taking more than the required distribution from your retirement money.

Some people think they should never spend their principal, but this can he a mistake if you want to save taxes. It could be better to spend some of your regular assets first, so that you can take advantage of the tax-deferral benefits associated with IRAs and qualified retirement plans. You could be better off financially from an income tax standpoint. Your lifetime tax bill can be less or you will at least defer taxes for many years.

Consider the following hypothetical example that assumes you have a taxable regular money account and a tax-deferred retirement account with a $100,000 balance each.  Let’s assume the money in each account earns a return of 6% per year.  Let’s further assume that annual distributions of $6,000 per year are being taken for a 20-year period. Under one scenario, the $6,000 will be taken first from the taxable money and the other scenario considers what would happen if the money was taken first from the qualified money. Under this example, you would have $150,000 more at the end of 20 years by spending your regular money first. The upside is that you could potentially hold onto more money while you are alive.

Of course, the down side is that your beneficiaries will eventually have to pay income taxes on the money when you are gone. As the information provided by this example is hypothetical, actual results will vary depending upon the performance of your investments.²

1 Federal income tax rates range between 10% to 35% under the 2009 federal tax code, and are based upon the tax payers level of annual income. State income taxes could also apply, which vary from state to stale. Please note that federal and state lax laws arc subject to frequent changes.

2 The fact that the beneficiaries are going to pay income taxes at a later date could be an advantage if they are in a lower tax bracket.  As previously explained, estate taxes could also apply if the decedent’s estate exceeds $3.5 million in 2009, $1 million in 2011 and thereafter.

Please call if you would like more information on this, Please call me at - (321) 446-0646