Taking Care of Your Family
Taking Care of Your Family

Episode · 10 months ago

Tax Tips and Strategies to Keep More of Your Money from Going to the Government

ABOUT THIS EPISODE

The government doesn't go away during your retirement years. In fact, many times they are more aggressive. Learn how you can plan today to lower your tax liabilities during your retiremnt years.

And welcome to the taking care of yourfamily podcast with financial experts and number one Amazon, bessellingauthors, George and Angi Politaros. Each episode feature helpful, ensize,practical tips and reliable strategies to help make your retirement asenjoyable as possible for the next few minutes enjoyed listening as cohostBethany builtson talks with George and angist about taking care of your family. Today I am joined by Andi Paulitara.She is the author to author. I should say of taking care of your family, howto properly plan for retirement without taking unnecessary risks, and you thankyou so much for being with me today. I appreciate it. Thank you for having meappreciateed, so your brother wrote the other part of this book, and so wetalked to him going over the first four chapter. So today I'm going to be goingover chapter five with you. It's called...

...the Tak Shield, so you describe in thischapter youscribe taxes as kind of being the time bomb of retirement,something that can take a lot of people off guard. So in your experience whyhis taxis, something that needs to be considered when people start planningfor their retirement? Well, thanks! That's a great question,and the answer to that is: is that there's so many components when youretire when we, when we're working, we'repaying our taxes as we go along, and then we put our money in our four O Onkwe put money into our pension and that money all goes in tax deferred,meaning that we don't pay the taxes going in. But when they come out you'regoing to pay the taxes, so people say well, I'm going to retire and I'm notgoing to have earned income so to speak. But you will pay the taxes on thatcoming out. So we look at the entire picture in our plan to see how we canalleviate the taxes to the best of our...

...ability, everybody's scenario'sdifferent, but in the world today we don't know we say that you're going tobe in a maybe a ten to fifteen tops twenty ar twenty percent tax cracket,but with our economy today and the world what's happening, we can't saythat that's what it's going to be in the future, because the economy rightnow they say that it takes for every dollar that you spend the government.Sixty six cents goes to four things, which is social, Securi, Medicare,Medicaid and the national debt. The balance is devied upto take care of all of the other divisions within the government moving forward, probably within thenext year or two. It will now cost the government. Ninety two cents to fundthose four divisions of the government, which leaves eight cents left. So whatdo we think is going to happen WHO's going to be affected? We the peoplethat encomforts everybody doesn't...

...matter if you're still working oryou're retired ot would it affect more? It would be taught reeffecta retiredperson because they say that I have x amount of dollars, so if their tax ison from ten percent to twenty percent, that's ten percent! Now that it's goingto cost them, that's going to be taken away from them, so they're going tohave to live with ten percent less. So what we do is we try to alleviate someof the process and what we can do is we can look at their what they have intheir portfolio and maybe move some of it and start pulling money out now whythey're employed and take a product of four O Onek and converted to a Roth there's different things that we can doto alleviate if meeting paying the taxes, why you can still afford to paythe taxes and then, when you retire, you'll get that money back tax rate andall the earned interest tax crat. So that's at one approach that we have...

...but everybody's different right noweverything seems to be fine and we're basically you're at of ten twelvepercent, and you know what the Futureis going to hold. Our reports will showyou when you would run out of money withyour fouro one K or your pension, what's going to happen and when you,when you get into trouble, so that's what we're looking at yeah anddo you find that a lot of people kind of assume that taxes are always goingto stay the same like when they're planning out the retirement? Do theyassume taxes are never going to go up so then clean the repirement aroundthat? Yes, they do. Yes, they do they plan that around that they don't playHem for any change. They think that it's just going to continue this wayfor the next twenty thirty years, the same way that they don't plan out theirexpenses, that they don't think they're going to increase, which is what weshow them and our reports will provide for them, increases for the next thirtyyears or fifty years up and take up...

...until a age a hundred. So you need toprepare for that. What are you going to do the? What, if or the big question?How are you going to handle it yeah? Another big thing is that you knowpeople took their money. They did the secure act that they created inDecember and I think October of two thousand and nineteen, and it just wentinto effect in two thousand and twenty- that you had to take your rmds requiredminimum distributions by Agh sevenday and they changed it to now. Seventy two,which helps a lot of people because people that was mandatory to take nowthey can hold off to seventy two, which gives them an extra two years, meaning that you have to make requiredminimum distributions and pay taxes on that money. Because all these years thegovernment allowed you to put that money in tax free and now they want toget their money well it'. You touched on earlier, youtouched on using a wrong firea, and...

...that so can you get go a little bitmore in depth on that and then also are there any other steps that someonecould take to prepare for retirement, especially with their taxes? Well,there's all different avenues that we could look at and different productsthat we have. I brought out the routh as one type of a product and the routhis. We could pull out money on a gradual basis, soy that you're not hiton the taxes up front and do a backend conversion and put it into a wrothlittle by little. So by the time you retire, you could have either all ormost of that money in a Rougt, so the taxes would have already been paid soand then turn it on as income that you get the rest of your life, but not have a tacks. RMIFICATION oryou know, issue with that. Yeah Yeah and have you seen in the clients thatyou've talked with? Have you seen? A lot of them are lone cided by fivetaxes, ofto giving a Brasin very. They...

...have no concept, and then you look atto that you're receiving all this money, and you have two people, a husband anda wife that are getting and theyre paying the taxes as a couple, and nowthey get the benefit as a couple, an these deductions and then the one diesand the other ones left paying actually more taxes Tho. It affects their costof living also because now you lose your spouse and you lose those credits,but the income basically remains to Saye. Maybe just their safe of securitywould change. But and then you have to look at the moneythat you pay and the taxes does it affect what you draw out of your socialsecurity and is that money tax? So there's there's so many differentcomponents that we have to look at for. You well, and I just think, that'sanother great reason to go and pick up a copy of your book because it reallyis about being educated and knowing what you're doing before it's too late.I think that's where just from hearing you talk and hearing your brotherGeorge speak that Sombony of your...

...clients are just kind of unaware ofwhat's out there for them and what they need to do, and so a great first stepis to pick up a copy of your book, it's by Angi and by George Paulitaris, itscalled taking care of your family. How to properly plan for retirement withouttaking unnecessary risks? And you think you so much from being with me today, Ithink oen haven't me. I appreciate it thanks for listening to the taking careof your family retirement podcast with financial exports and number one Amazonbest, Olin Authors, George and Ange Polataros, you can request a copy oftheir best selling book or schedule A conversation with them about yourfinancial future, but going to the website genuine financial advisors, com.

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