It doesn’t take a financial expert to recognize The United States Government cannot keep spending money at the current rate.  I don’t care whether you are a Republican or Democrat, we have spent ourselves into a problem and it’s time to pay the piper.  The question becomes with tax increases a foregone conclusion, which will be more important to you over the next 25 years, how well manage your assets or how well you manage your taxes.

For those of you reading this that think taxes surely can’t impact me that much, consider the following – if you double a dollar per day for 20 years you will have a little over 1 million dollars.  Take the same dollar and apply a 28% tax before you double it each time and you will be left with just over $50,000.  Ouch!  Consider the following tax increase next year alone!

• Capital Gains tax rates will be increasing 33%
• Tax on Dividend income will be increasing over 164%
• Ordinary income tax rates in the highest tax rate will increase
• The highest tax rate in this country was never below 70% until the early 80’s.

My purpose isn’t to offer you 10 different solutions for the next 25 years, instead bring it to the forefront of your consciousness so you can start addressing it.  I will say this, if you haven’t consider harvesting gains this year in a lower capital gain tax year, you might want to consider it prior to December 31st.

If you haven’t, schedule time to sit down with your financial advisor and/or tax professional, why wait!  Change is coming – you can either take advantage of it or let it take advantage of you.

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Kile Lewis, CRPC®
Co-CEO and Founder oXYGen Financial, Inc.

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oXYGen Financial, Inc. co-CEO Kile Lewis is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.

KILE LEWIS  IS SECURITIES LICENSED THROUGH INVESTACORP, INC. A REGISTERED BROKER/DEALER MEMBER FINRA, SIPC.  ADVISORY SERVICES OFFERED THROUGH INVESTACORP ADVISORY SERVICES, INC. A SEC REGISTERED INVESTMENT ADVISORY FIRM. Linked sites are strictly provided as a courtesy. Investacorp, Inc., and its affiliates, do not guarantee, approve nor endorse the information or products available at these sites nor do links indicate any association with or endorsement of the linked sites by Investacorp, Inc. and its affiliates.

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