I wrote The Retirement Tax Bomb back in 2019 because I believed taxes were bound to rise—and now, I’m more convinced than ever that something drastic will have to change. At the time, I hoped our elected officials would take action before we reached a true crisis point. But here we are, years later, and meaningful reform still hasn’t happened. Frankly, I don’t see the political will appearing anytime soon. That’s the unfortunate part. The fortunate part—for those paying attention—is…
Category: Taxes
Using The ‘Gap Years’ Effectively for Retirement Tax Planning
Did you know you could save thousands of dollars in taxes just by planning your retirement timeline strategically? For many retirees, the years between leaving the workforce and beginning major retirement income sources—like Social Security or Required Minimum Distributions (RMDs)—offer a unique and often overlooked opportunity: the “gap years.” These years can be a golden window for smart tax planning that lowers your lifetime tax burden and increases long-term financial security. In this article, we’ll break down what gap years…
5 Facts and 3 Myths About The Tax Cuts and Jobs Act (ie, The Trump Tax Cuts)
The Tax Cuts and Jobs Act (TCJA, also known as the Trump Tax Cuts) was signed into law in December of 2017 by President Trump. Because of the way that tax law is structured (it is usually not permanent), it leads to frequent conversations about what to do with this or that aspect of tax laws. I expect that this year will be no different as our politicians decide what to do with it. While it’s likely that Republicans (who…
Huge Tax Bills Caused By Poor Asset Location
Last week we talked about the Essentials of Asset Location; basically, what investments we should put in different account types. In today’s episode, we go through a real life example of how very poor asset location ended up costing investors thousands (and in one case hundreds of thousands) on their tax bill.
Tune in to learn from their mistake and not end up with a nasty tax surprise.
3 Charitable Strategies For Retirees in 2021
If you’re looking for ways to give money to charity in a tax efficient way, this episode is for you. It’s based on a great article I read by Christine Benz over at Morningstar, and it highlights three ways you can give to charity this year, including one really easy one that anyone can take advantage of.
5 Reasons NOT To Do A Roth Conversion
While Roth Conversions can be a great financial planning tool, they are not suitable for everyone. And there may be times when you should avoid them altogether. In today’s episode, I discuss 5 reasons why you should not do a Roth Conversion. Make sure to tune in so that you can be as smart with your taxes as possible, and set yourself up for the best retirement possible.
Should You Do A Giant Roth Conversion?
I received a great question from someone recently: Should he do a giant (and I mean giant) Roth Conversion in light of potential tax increases as well as future legislation potentially ending Roth Conversions?
Tune in to listen to my answer as well as 5 things to think about if you want to make a big Roth Conversion.
Webinar Invitation: How To Create Your Tax Strategy
What you need to do to lower your tax burden
I get a lot of questions about how to lower your taxes not just in the current year, but over your lifetime. It’s an important topic, especially as taxes are set to rise in just a few years (or maybe sooner).
Next Wednesday at 6 PM MST/5 PM PST, I’ll be hosting a live webinar on how you can start creating your own tax strategy so that you can lower your lifetime tax burden and retire comfortably.
A Politician Gets An Education On Taxes
Last week a politician said something so head scratching about taxes that made me wonder how much he really understands our tax system. The Congressman (Jerry Nadler) said: “No one should ever be taxed twice on the same income. It’s not fair and it’s not just.” Where in the world has he been? What tax code has he been looking at for the 29 years he’s been in Congress? Since I am a teacher at heart, let’s do a little education for Mr….
An Annual Tax Checkup? Free Offer Inside
I recently went to the Dentist for my annual check up and like I do often, saw a connection to our personal finances. Thanks to my amazing parents (and the braces they got for me decades ago) my teeth are pretty straight. However, I did get chastised a bit for not wearing my Night Guard to prevent grinding my teeth while I sleep. Meeting up with a professional, like a Dentist, on an annual basis not only helps prevent immediate…