In this week’s Hidden Wealth Review, I teach that the number one move you can make to best position yourself in retirement is to re-engineer your retirement. Your top initial move is to retire unnecessary tax!
There has never been a better time for you to save the most amount of tax while you live and then pass on as little tax as possible when you’re gone. You do this by re-engineering your retirement. The government is re-engineering retirement right now and it will only get worse in the future.
Gone are the old retirement days when people enjoyed employer-paid, lifetime pensions, banks paid respectable interest rates and there was no risk of Social Security benefits being cut. The Great Recession wiped out $16 trillion dollars in American household wealth and ushered in the new normal, our volatile global economy.
In 2015, legislation changed the rules on Social Security’s long-standing “file and suspend” strategy. Due to this change, millions of retirees lost as much as $250,000 worth of income over their lifetimes.
If the last few decades have taught us anything, it’s that planning ahead for retirement is easier said than done. There are now added risks such as the government’s recent rule change for inherited IRA’s (which happened in the middle of the retirement game). The upcoming election is a political war that focuses on raising taxes like never before.
I just met with a 72 year-old widow from Orlando. She had a list of concerns about her retirement:
- Paying excessive taxes,
- Her stock market exposure was too high and she wanted safety,
- Unnecessary taxes on her brokerage accounts,
- Under performance of her retirement accounts,
- Required Minimum Distributions (RMDs) causing higher taxes and taxing her Social Security.
But she’s not alone. We hear these exact same concerns time and again!
But her challenges were much deeper than she realized. Her son lives in California, one of the highest state income tax states in the country. If she passes away after Congress enacts the new SECURE Act, over half the value of her IRA will go to Uncle Sam, instead of to her son and granddaughter!
Before she came to see us, she had lost her husband to cancer, so her income tax filing status was single. Like many people we meet with, she was in a traditional brokerage account with about $1 million in the brokerage and $1 million in an IRA. Although she wasn’t making much money in these accounts, she was paying a huge amount of money in fees. What she got in return for these fees was under-performance.
What earnings she did have in her brokerage account, plus her RMDs, were taxing 85% of her Social Security income and pushing her into a higher tax bracket. She had become the government’s perfect taxpayer!
After we taught her about the SECURE Act, she realized that, like it or not, the government was re-engineering her retirement for her. Her goal was to leave the money she didn’t use in retirement to her son and granddaughter. She asked us to help her re-engineer her own retirement instead of following the crowd and allowing the government do the re-engineering.
We showed her how to get the IRS out of her IRA and how to put money that’s otherwise paid in taxes back into her budget. Now she has more resources so she can visit her son and granddaughter more often. She’s protected herself from unnecessary taxes while she’s living and she’s completely eliminated taxes on the money that she will pass to her son and granddaughter.
This coming Tuesday, I will be teaching my Wealth Protection Webinar. During this no-cost, no-obligation educational event, I will be teaching a strategy that our clients have used for years to disinherit the IRS from their IRAs. Imagine, saving thousands of dollars in tax with no RMDs and savings tax for our families by eliminating the risk of inheritance tax.
To register, go to www.RetirementProtected.com, enter your information and submit the registration. Once you’ve registered, you’ll receive an email containing a personal link to join Tuesday’s event. Let me teach you how to grow, protect and transfer your money without unnecessary taxes.
I encourage you to register for your preferred webinar time now, because these events fill up fast. Those who attend this event will receive an e-copy of my latest book, The Baby Boomer Retirement Breakthrough-The Unfair Advantage to a Safe and Secure Retirement.
-Spouses are encouraged to attend this event together-
(855) No Tax 2 U
We are excited to announce our latest press release. Great things are happening at The Hidden Wealth Solution! Click here to read the full release.
Here’s to your Hidden Wealth,