Retirement Planning

The Power of Tax-Deferred Growth

If you could increase the return on your investment without taking on additional market risk, would you? Of course you would! The question is how, right?

That´s exactly what happens when you invest in accounts that defer tax withholding until the time of withdrawal.

For example, when you pay taxes at the rate of 25% on your annual gains, it reduces the amount of money in your account that could be earning valuable interest. With tax deferral you would delay paying those taxes, leaving the money inside the account. Because there is more money available in the account to earn interest, your account balance may grow and increase faster than without tax deferral.

Many people we work with are more concerned about keeping what they have and making it last, than the best stock pick of the month.  When we invest the first thing we MUST look at is risk and how much we will take in a particular investment.  What is your ‘downside‘ risk?  How do you get your money back and what is the worst case scenario?

That’s why resourceful baby boomers and retirees are turning to research, financial coaches, and investment advisors for the information they need to review their portfolios and address the questions:

“What kind of pre-retirement planning do I require, now, for a successful transition to life after work?”

“What can I do now to help protect my life savings from the uncertainty of our economy and global markets?”  the secret is not predicting the next recession, but planning for it.

Pre-retirees and retirees who have a written financial plan before they receive the Gold Watch, may be better off than those who do not. Seek the advice from a trained professional like an Investment Advisor Representative at TradeWell™. We are Fiduciaries and are legally obligated to hold your interests ahead of ours.

Know What Plan Fees You Are Paying For Your Retirement

AARP estimates that hidden 401(k) fees of 1% can reduce a worker’s retirement returns by about 15% over 30 years. For an account of $1 million that comes to $150,000.*  AARP  published a report that 71% of Americans believe that they pay zero fees inside their 401k and the mutual funds they are invested in.  There are over 9500 mutual funds in America which is double the amount of public traded companies.  Why do you ask why are there so many?  Because its extremely lucrative and the trouble is its more lucrative for Wall Street than normal investors like you and me.  Stay away from actively managed mutual funds and roll over your 401k into a IRA that is managed by Tradewell Tax & Financial.  We will use Etf’s which are low cost and tax efficient, and individual stocks which do not have any internal fees at all.

Twenty years ago, the cost of administering a 401(k) plan was primarily the responsibility of the employer. Today most of that burden has shifted to participants. According to a recent article in AARP, “Although workers have not been receiving itemized bills for fees they pay in their 401(k) retirement plans, those hidden costs may be chipping away at the growth of their nest eggs.” Most if not all 401(k) participants are also shouldering the burden of managing these accounts themselves, or relying on a call center representative for investment advice.

* Sourced from:

Excessive internal fees can destroy two-thirds of your retirement.  Let’s assume that the stock market will gain 7% over the next 50 years.  At this rate for each dollar  that is invested grows to 30 dollars, but the average mutual fund charges over 2% in total expense ratios and trading costs, which means you earn 5%.  At this rate you get 10 dollars.  Ten dollars verses thirty dollars.  You take all the risk, put up the dollars for the investment and take 100% of the risk only to earn 33% of the return.   You take it on the chin only to line the pockets of the mutual fund companies, your 401k providers and investment advisers.  If you hire an adviser who uses mutual funds you are essentially paying a manager to manage the managers and you add an additional layer of fees on-top of what we discussed above.  Remember, most of our new customers come from other advisers and big-names investment companies you see on Television.

“Compound interest is the eighth wonder of the world. He who understands it, earns it..he who doesn’t…pays it”  Albert Einstein


Mike Albertson is an Investment Adviser Representative. Advisory services offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser.

Wes Phelps is an Investment Adviser Representative. Advisory services offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser.

Tradewell Tax and Financial is not affiliated with Secure Asset Management

Representatives of Tradewell Tax and Financial are authorized in states where they are properly registered. Mike Albertson: AZ, FL, IN, KS, KY, ME, MI, MN, NC, OH, SC, TX. Clients who are not residents of these states cannot be serviced.

This website is not intended to provide investment, legal, or tax advice, nor to effect securities transactions or to render personal advice for compensation. Tradewell Tax & Financial is not engaged in the practice of law.

All insurance recommendations will be provided by a state licensed Tradewell Tax & Financial insurance agent.

There are no assurances that you will achieve your investment objectives. All investment strategies have the potential for profit or loss. Changes in investment strategies, economic conditions, contributions, or withdrawals may materially alter the performance of your portfolio. Past performance is no guarantee of future success. We provide no guarantee that any portfolio will match or outperform any benchmark.

Recommendations and advice are based on information provided by the client that is presumed to be accurate. The financial planning process is not stagnant and must be adjusted based upon changes in the client's personal and financial situation, liquidity needs, investment objectives, and risk tolerance. Clients are responsible for notifying us immediately if their personal and financial circumstances or goals change.