In this week’s Hidden Wealth Review, I teach how there’s never been a more important time to re-engineer your retirement. One of the most important moves is making your retirement resilient to taxation. There couldn’t be a more important time to do this than right now.
After two decades as a Wealth Architect, I’ve learned that it’s difficult to plan confidently for retirement. This is mainly due to the fact that the retirement rules have changed.
In 2008, over $16 trillion in wealth was simply wiped away. In 2015, the quick stroke of a pen robbed Baby Boomer couples of the “file and suspend” Social Security benefit election. This change cost the average Baby Boomer couple as much as $250,000 in lifetime retirement income.
On top of the ever-increasing cost of healthcare, it appears that consumer prices are going to rise, due to the looming trade war. Forbes magazine calls trade tariffs the hidden tax that will ruin retirement.
Finally, the SECURE Act imposes a 10 year withdrawal period on any non-spouse inherited IRA. This will force children and grandchildren into higher tax brackets. The end result is that about 50% of the inherited amount will be paid to the government in taxes!
I want to tell you about Sue, with whom I recently met. She’s 74 years old. She lost her husband to cancer and she’s now walking the retirement tightrope.
Sue did everything right when it came to preparing for retirement. She saved aggressively into her retirement account. She inherited money from her late husband’s retirement and she saved religiously into a brokerage account. She has over $2 million between her tax-deferred IRA and her taxed-as-earned brokerage account.
Both of these accounts were putting her retirement on a tightrope. Sue shared that her brokerage account was throwing off an enormous amount of tax and the Required Minimum Distributions (RMDs) from her tax-deferred IRA were forcing her into a higher marginal tax bracket. This exposed 85% of her Social Security income to taxes. She’s was also paying higher Medicare Parts B and D premiums, as well. She was paying a total of $2,000 a month in unnecessary taxes! That is, until she learned how to get off of the retirement tightrope.
Sue learned how to re-engineer her retirement so that she now enjoys an extra $2,000 a month in retirement income. This was money she was previously paying to the government in unnecessary taxes.
There’s a significant difference in planning for retirement and planning in retirement. Employer pensions, reasonable interest on bank accounts and sustainable Social Security are things of the past. Plus, we now live in a global economy that changes at even the hint of bad economic news.
When you consider all of these, it’s no wonder that many people headed into retirement or who are already retired, feel like planning ahead is almost impossible. If you made your financial plan a few years ago, it’s time to re-engineer your plan. Today, everything is a moving target!
Insulate your IRAs from the IRS. The hidden new tax comes from the trade war tariffs on consumer items. Tariffs are now a new reality. It’s more important than ever to guard your savings before things spiral out of control. Fortunately, you don’t have to let the new tariffs take a huge bite of your retirement savings. You can protect your financial future.
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, strategically and legally avoiding all unnecessary taxes on your income, Social Security and Medicare.
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-
www.RetirementProtected.com
Or Call
(855) No Tax 2 U
(855) 668-2928
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,
Chuck Oliver
Best-Selling Author