The Tax Ratio
It directly decreases the taxes you pay and the money you are able to save. A tax ratio of 1.56 means that if you earn $156.00 you will keep $100.00 and $56.00 will go into Sam’s bank. Knowing how to use the tax ratio can reverse the affects, and you can save that same $56.00 in your bank. If you were to receive $56.00 for every $100.00 you give to your future, how many hundreds would you give to your future?
Is the $56.00 in our example really that important to your future?
Yes! And here is the why.
• Social Security Benefits Have Kept 2/5 of Those Aged 65 or Older out of Poverty
• Without Social Security, the Poverty Rate for the Elderly Would Be About 50%
• Women Comprise 56% of Adult Social Security Beneficiaries
• The Average Retirement Income is Only 37% of What is Needed to Live On
You want to live on 100%. So you need to plan to save, don't fail to plan.
Then there is inflation.
Example 1:
1. The cost of a pair of tires today is $450.00
2. Today’s inflation rate is 3%
3. 20 years from today
4. The cost would be $819.95
Example 2:
1. $200.00 of groceries.
2. 3% inflation
3. 20 years from today
4. Cost $364.42
Now add one more fact.
Your cost of living raise is 2.5%. If inflation is at 3% you're losing ground
Knowing how to give another $56.00 to your future may be difference between meat or beans in the future.
Moreover if you are able to do all of this and come home with the same pay, why wouldn’t you want to do that?
Don’t let this happen to you, we are here to help you prepare for the future, contact us and stop giving Sam your money.