What many people are starting to realize is that taxes in retirement might actually be more than they were when they were working. We’ve been taught our entire lives to defer taxes by contributing to an IRA and 401(k), but that ends up leaving retirees with more to pay down the road.
What’s important to know is that the taxman will cometh at some point, and it could be for more than you are paying today. History has shown us that rates can rise substantially in just a handful of years with our top tax rate reaching 90% in the 60s. As debt increases – and the average debt per taxpayer today is about $250,000 – the government will have to find ways to make that money back.
Over the course of the show, Don will breakdown the tax problem facing our country right now compared to what we’ve seen in the past. Then he’ll share some tax planning strategies that you should consider and point out a couple key areas in retirement where planning will be critical.
Here’s some of what we discuss in this episode:
- As we finish our taxes for 2022, what should people be looking at for 2023. [2:34]
- Where are the blinds spots for people in terms of taxes? [4:30]
- How will the government pay off the rising debt we’re facing. [8:05]
- One of the biggest strategies right now is utilizing a Roth. [12:20]
- An example of how longterm care and medical bills play into tax planning. [14:28]
- Why understanding the seven tax brackets are important. [20:01]
If you have any questions about what we discussed in this episode, please reach out and we’d be happy to provide answers.