Jul 8, 2022
Taxes will be Your Biggest Expense in Retirement! Tax Protection - Buckets to Brackets
- BRT S03 EP30 (129) 7-8-2022 – Wealth for Life
Things We Learned This Week
- Capital Control - Tax Free $, No Losses, Principal Protection, Lock in Gains
- Top 10% Strategies – if you earn more than $140K, than top 10% earner, so most financial advice does not apply anymore
- “One Thing” Retirement Plan – 401K, & stocks (+ W2 income), has Market Risk, & no Defense
- Assets act as a hedge vs. inflation - money sitting in cash, loses value to inflation, purchase an asset that goes up in value more than inflation.
- Past – people had pensions, savings, & social security to rely on, today have to create your own retirement plan – use Tax Buckets and move money into a long term Tax Free position to defend vs rising taxes
- Tax Buckets, broken into 3 categories of Taxed (income), Tax deferred (401K), Tax Free (Roth)
Co-Host: Denver Nowicz, President - Wealth For Life
https://wealthforlife.net/brt/
https://twitter.com/denvernowicz
Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.
Notes:
Tax Protection – defense strategy, put money in long term tax free position
Index Strategies with IUL
Top 10% strategies – if you earn more than $140K, than top 10% earner and most financial advice does not apply anymore
Wealth gets more wealth – save and invest more money using leverage can grow massively thru compound interest
“One Thing” Retirement Plan – 401K, and stocks (+ W2 income), hope it goes up and no volatility (market risk). 90% of people are on this plan – Need to get away from this plan and diversify your retirement plan
Retirement Rule or 4% Withdrawal Rule – is outdated, and often will fund one’s lifestyle in retirement
More efficient use of money
Assets can act as an inflation hedge, as they increase in value when Inflation rises.
Income Streams – Good use of Harvesting type assets leads to multiple income streams
Net Worth – personal financial statement, fill out yearly and list asset values
Tax Mitigation – Top 5% hit by taxes
Tax code favors investment, business owners and people who take risks – have write offs. W2 employee gets punished.
Tax Buckets – taxable income, tax deferred, tax free
IRS tax table to see tax bracket
$100 K at 24% = $24 K / yr X 25 years = $600 K savings
$137K, $250 K, $432 K
Top 10%, 5%, 1%
Tax rates low vs. US history
16th Amendment, 1913 – created Income Tax
70% pay little
Tax free exit –
Capital Efficiency –
Financial leverage –
Average retirement – 6x home cost
Forget retail mindset – 90% financial ed does not apply to top 10%
$100K 6 figure income with inflation – need $250 K
Cap. Control – no losses, principal prot.
Taxes – permanent loss of 25-50% every year
You are always Partners with the Gov’t / IRS
More Info on WFL and Tax Free Matching: HERE
Wealth For Life Topic: https://brt-show.libsyn.com/category/Wealth+For+Life
Link to Taxes Show on 10/31/2021 w/ Denver: Here
Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here
Link to Shows, Denver was a Guest: Here
Investing Topic: https://brt-show.libsyn.com/category/investing
More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of
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