High income during working years does not automatically translate into replaceable income in retirement.
Affluent households often save a great deal and still face a shortfall, because the lifestyle being replaced is expensive and the savings are concentrated in taxable-on-withdrawal accounts.
The gap is rarely visible in the balance. It shows up when the balance is converted into after-tax spendable income.
Closing it usually means changing the mix of account types well before retirement, not increasing the savings rate in the final years.
For informational and educational purposes only. This material is not intended to provide, and should not be relied upon for, tax or legal advice. Tax laws and their application vary based on individual circumstances and are subject to change. The availability and potential benefits of the strategies discussed depend on each business owner’s specific circumstances, transaction structure, and applicable law. Consult your tax and legal professionals before implementing any strategy discussed.