When To Save On Taxes For Retirement?

by | Hidden Wealth Reviews

In this week’s Hidden Wealth Review, I teach not to gamble your retirement on next year’s election. If a Democrat gets elected, you will face what I call The New Triple Retirement Tax Threats. Here are those three threats.

  • Repeal of the Step-Up in Basis proposed by Former Vice President Joe Biden. If the step-up in basis is repealed then, when your children inherit say, your brokerage account, they will pay capital gains on the difference in value between when you purchased the stock and the value of that stock at the time of your death. This will produce at least a 50% increase in the tax they pay.
  • Doubling of the Capital Gains Tax Rate. Former Vice President Joe Biden also wants a 40% tax rate for certain income levels and assets.
  • Taxing the Gain of Growth. This proposal would tax you on the growth of your asset, even if you don’t realize that growth by actually selling the asset. The proposed tax amount is 20%. By example, if you own a stock that goes up by $10,000, you would owe a tax of $2,000 on that growth. They plan to collect this tax each and every year.

    • I’m reminded of Joan, who has been our client for about a decade. For years, she did everything right for retirement. She saved lots of money into a 401(k) with a company match. When she retired, her Required Minimum Distributions (RMDs) forced her into a higher marginal tax bracket. This caused 85% of her Social Security income to be taxed and she was also paying higher Medicare Parts B & D premiums. All told, Joan was paying $2,000 a month in unnecessary taxes. She was actually paying more tax in retirement than she did during her highest wage-earning years!

    Joan had lost major amounts of her life-savings in the Lost Decade of 2000 to 2009. Twice, she suffered stock market losses of 50%. Once between 2000 and 2002 and then she lost 50% again in 2008 and 2009.

    Joan is also challenged by the SECURE Act which applies to non-Spouse inherited IRAs. She has three sons and each of them will be required to fully liquidate Joan’s inherited IRA money over a period of 5 to 10 years. This will result in the inherited IRAs being taxed at the highest marginal tax rate because the funds count as income. This amounts to Uncle Sam becoming a 50% Business partner with each of her sons.

    We were able to show Joan:

  • How to save taxes in retirement.
  • How to have safe and predictable returns that avoid the ups and downs of the stock markets.
  • How to protect her family’s future inheritance.

    • It’s your money and you’ve worked hard for it! If there was ever a time to predictably save tax, it’s right now. While President Trump is in office we have the advantage of the Tax Cuts and Jobs Act. 2019 and 2020 are vital, strategic tax-planning years. Don’t miss this opportunity!

    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 will help you avoid The New Triple Retirement Tax Threats.

    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

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    Here’s to your Hidden Wealth,
    Chuck Oliver
    Best-Selling Author