Phil Cannella Discusses Traditional Retirement Accounts – Phil Cannella Media


Phil Cannella has lots to say

Phil Cannella – Phillip Cannella Media: Phil Cannella has many things to say about traditional retirement accounts, their benefits and their drawbacks. One of the points he makes is about tax-deferred growth that occurs in most accounts versus tax-free growth. Phil Cannella puts it this way, “A tax-deferred retirement account is free from taxation until you want to withdraw from it.  A tax-free retirement account is never subject to taxes once it has been established.”

Phil Cannella points out dealing with taxes

With tax-deferred growth, Phil Cannella explains that you don’t have to pay taxes today on the monies you are putting into your retirement account and the account can continue to grow without you paying taxes on the principal, the gains or the interest until you start making withdrawals. This is very attractive to many because during their working years they are usually in a higher tax-bracket and by deferring the taxes to later in life they could well be in a lower bracket.

Phil Cannella points out though that this is not always the case and with some clients they would be better off with dealing with the taxes now and then never having to be concerned with it ever again. Phil Cannella asks us to consider the national debt and the only way this will ever be reduced is by increasing taxes. When that happens, the amount of money you have in a traditional retirement account just decreased. This is why Phil Cannella suggests we take a good look at tax-free versus tax-deferred growth as an integral part of our retirement planning.

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