One recommendation I make often to people is if they have a bucket list, don’t wait until retirement to fill it.
Sadly, I have clients pass away every year, reminding me of just how limited time is.
Travel requires energy, as well as money, two things that are more in supply during our working years.
And while I haven’t traveled extensively, when I do return I always reach the same conclusion: nothing beats America.
The US different in many ways.
To me, taxes stand out the most.
Throughout Europe, all goods are sold with a 17.5% VAT (value added tax).
What value they are adding for 17.5% remains to be seen.
When I first encountered this national sales tax, I assume Europeans wisely adopted it in lieu of an income tax.
Boy was I wrong.
Not only does the United Kingdom have a VAT, they also tax income at an amazingly high rate.
For earnings in excess of about $200,000, you pay 45%.
On top of that, prices are incredibly high.
In London , a 1400 square foot apartment can sell for more than $3 million.
I realize it costs a great deal to keep the royal family comfortable in all of those palaces, but someone missed the message that Sam Adams & his cousin John tried to convey 240 years ago.
Even with representation, high taxation stinks.
I don’t envy the work of financial advisors in other countries.
I can help people achieve a tax-freeretirement on their income, but a 17.5% VAT cancels out a lot of good work.
So, while I encourage you to visit London if you haven’t already done so, keep it to a week. And keep your receipts on anything you buy. For as a non-Euro, you are entitled to a refund on the VAT for any goods you plan to take outside the kingdom. That’s the only way I know to avoid the VAT. As for other types of taxes, especially those on your retirement accounts, we have a lot of good ideas at The Wealth Advocate.
To learn more, call us today to schedule a free consultation and I will send you my ebook “7 Little Known Ways to Legally Beat The IRS.. Even if we don’t work together you get to keep the book.