In this week’s Hidden Wealth Review, I want to teach you how you can stop paying taxes you don’t owe! This longer Hidden Wealth Review was not created to cause complaints about how long it is. It was created to show how important each of these tax-savings talking points are to the overall success of your retirement planning. This week I’m focusing on the hidden and non-hidden taxes that are, and will be, stealing money from Baby Boomers. One of the hidden indirect taxes is a given.
Let me ask you a question. Would you just accept a 21% loss? The Social Security Administration is forecasting not just a loss, but they are telling us when that loss will impact you. Social Security predicts a 21% loss will occur by 2034 or sooner. The reason for the reduction is really nothing more than a hidden tax that reduces the return on what we have already paid into Social Security. This money that we are rightfully owed is literally being stolen from us by the government, using a penalty tax disguised as a reduction of our Social Security income benefits.
This is just the beginning of having to pay taxes that we don’t owe. Almost every Baby Boomer I have ever met with in my twenty plus years as a financial advisor is taken back by how they have enabled the government to force more taxes on them. They are stunned when they realize that these are taxes that they don’t have to owe. Add to this the other hidden tax which indirectly taxes Medicare Parts B and D premiums by as much as $369 per month (per spouse) and people realize quickly that taxes are a rigged government game. The key is learning how to play the game so that you, not the government wins. You do this by simply using the government’s tax code to your advantage.
I’ve sat across the table from Baby Boomers and business owners for the last 23 years. I know that a large percentage of Boomers count on their Social Security income. This 21% “loss” is just one of the hidden taxes that’s going to impact and reduce their retirement lifestyle. For the average couple with whom we work, a 21% reduction in Social Security equals $8,000 per year in lost income. The impact is that most people will lose about $1,000 a month in income per couple (adjusting for inflation).
I really wish the bad news stopped there. The Federal Reserve just reported record income tax collections through the period that ended in June. Despite record tax collections, there was still a $607 billion deficit! To make matters worse, there’s already talk of a “Tax Reform 2.0” that includes even more tax breaks. There’s been no mention of how the government will pay for these breaks. You can probably guess that those tax breaks are going to be paid for by the Boomers that have worked the hardest to get ahead by earning and saving the most money.
If you have money trapped in IRAs or 401(k)s, the “tax torpedo” hasn’t even crossed your bow yet. Social Security’s announcing reductions, The Federal Reserve is telling you they can’t collect enough tax to cover the deficit and there are rumors of more unpaid tax cuts on the way. To pay for all of this, we are going to see increased IRA and 401(k) taxes, higher Medicare Parts B and D premiums and taxes on up to 85% of our Social Security income. These tax increases, Social Security cuts and higher Medicare premiums will cost the average couple somewhere between $1,000 and $2,000 a month plus unnecessary income taxes of over $2,000 per month!
The clincher is that the taxes that are not paid by Baby Boomers are passed on to the next generation, when their children inherit their IRA or 401(k). In essence, what they are leaving their children is a Required Minimum Distribution inheritance tax for the rest of their lives. This exposes them to all of the added taxes on their Social Security and their Medicare premiums. All of that on top of forced higher income taxes to them.
I want to teach you how to get the IRS out of your retirement. This coming Tuesday, I’ll be teaching my Retirement Protection Workshop. This no-cost, no obligation educational event will teach you how to get Uncle Sam and the government away from your retirement lifestyle, income and savings. There’s never been a better time than right now to anchor down and insulate your serious retirement savings. Learn how you can have a better plan for yourself than the one the IRS has for you.
To register, go to www.RetirementProtected.com, enter the required information and submit your registration. Once you’ve registered, you’ll receive an email containing a personal link to join Tuesday’s event.
I encourage you to register now because these events fill quickly. Just for registering and attending, I will gift you an e-copy of my latest book, The Baby Boomer Retirement Breakthrough-The Unfair Advantage to a Safe and Secure Retirement.
NOTE: This is a log-on and learn webinar, not a live workshop. You will need a laptop or PC to join. It is strongly suggested that you NOT use an iPad or hand held device for this event. Our proven retirement and financial solutions are best for; people positioning themselves for retirement or who want to navigate better to or through their retirement. People who have saved $200,000 or more for retirement. People who are wanting to determine if they are maximizing and optimizing their retirement planning. Boomers who want to pay the least amount of taxes on income, reduce or eliminate tax on their Social Security and create a sustainable, increasing, lifetime income for both spouses.
-Spouses are encouraged to attend this event together-
Or Call
(855) No Tax 2 U
(855) 668-2928
Here’s to your Hidden Wealth,
Chuck Oliver
Best-Selling Author