042: Smart Tax Strategies for Individuals Entering Retirement

Mar 19, 2021

For years, the conventional wisdom has been to grow your assets tax-deferred while you work, then pay taxes on that money when you’ve entered a lower tax bracket.

Unfortunately, that wisdom has gone out the window. Why? It’s simple: America’s massive unfunded liabilities in Social Security, Medicare, Medicaid, and the interest on the national debt. Taxes are all but guaranteed to go up in the years to come, and this makes having a real tax strategy - and not just a tax plan - more important than ever before.

In this episode, we discuss strategies for people nearing retirement to help pay fewer (or even no) taxes in retirement, protect themselves from rising taxes, and better understand why our tax code is all but guaranteed to change after 2025.

In this podcast interview, you’ll learn: 

• Why the conventional wisdom of growing tax-deferred assets and paying taxes when you’re in a lower bracket has gone out the window. 
• Why interest on our national debt is likely to lead to significant tax increases in the years to come.
• Why it’s so important to avoid taking the 50% penalty by failing to take your required minimum distributions.
• How to use Roth conversions between the ages of 59 ½ and 72 to avoid paying extra premiums on Medicare B, C, and D. 
• Why tax preparation and tax planning are not the same thing.
• What may happen when our current tax laws sunset in 2025 - and why this makes planning right now even more important.

Show Notes

To get access to today's show notes, including links to all the resources mentioned, visit TheRetirementTrainer.com/42

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