72 • MARTIN H. RUBY
Micro A micro view on taxes aims to reduce your tax burden in a given year. This lens is what has led many savers to a tax-deferred approach. Traditional IRAs and 401(k)s lower your taxable in- come in a given year. And if you're most concerned with taxes in one year, this is the lens for you. Macro A macro view on taxes aims to reduce your taxes over your en- tire lifetime in retirement. And if that’s your goal, diversification with tax-free saving, like a Roth or IUL, becomes the right choice. So, ask yourself: Are you most concerned with reducing taxes this year, or over your lifetime in retirement? I know what my an- swer was, and I bet I can guess yours, too. If reducing lifetime taxes i s your goal, you need a macro ap- proach to taxes in retirement. And IUL can help you achieve it. Brief and to the Point This is a pretty short chapter. I know I don’t have to sell you on the benefits of saving tax-free rather than tax-deferred. We took care of that in Chapter Four. So I’ll just say this: as an actuary, I’m trained in protecting against risk. And protecting against risk is all about protecting against the worst-case scenario. When saving for retirement, the worst case for taxes is paying more than you have to over your lifetime. IUL is a sterling way to eliminate tax risk from a portion of your retirement assets.
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