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 putting your retirement interest for podcast with financial expert and number one Amazon bestselling author Robert Cannon. Each episode features helpful, inside practical tips and reliable strategies to help make your retirement as enjoyable as possible. For the next few minutes, enjoyed listening as co host Bethany Bilson talks with Robert Cannon about putting your retirement interests for. Well, I am here with Robert Cannon. Robert is the author of putting your retirement interests first. It's a prioritized approach to protect your future and turn your dreams into a reality. Robert, thank you so much again for joining me and sharing your thoughts and your expertise. I really appreciate it. Thank you absolutely so. This week the the fifth chapter of your book. We're going to be going over the tax shield. So you describe in this chapter taxes is kind of being the time bomb...

...of retirement. So can you explain why that is and in your experience, do you find a lot of clients or kind of blindsided by taxes? Sure, sure, so. Just to imagine, I made a deal with you, right. I said you get your you give me your money now and in ten, twenty, thirty, forty, fifty years down the road, we're going to make a deal. I'm not going to charge you a lot in taxes. So you could take your money off your taxes and we'll make a deal down the road. I'll charge you small amount, but trust me, it's not going to be a lot. You're basically making a deal with the government. You're in partnership now with the IRS. HMM, this is the problem. This is the problem that people don't realize. They can change the rules. They can change the rules at any point, and they just recently did so. Right now, look historically, right, look at a...

...tax chart. What they used to charge you in taxes compared to what they're charging you and now now, if you look at the the chart, the chart's been doing this. HMMM, silly. Now what we're what are we doing? We're printing money. We're printing money like you can't imagine. So we're at I don't even we have to check the chart. Twenty six trillion dollars. Okay, so we're printing money like this. We're charging the lower mountain taxes. Look at the chart. History work glows where you think taxes are going to go HMM. Realistically, mathematically speaking, they have to go higher. So now the government realized, you know, we have these baby boomers, we have this incredible amount of wealth, and I raise in these for one case. Where do you think they're going to go? TAX THAT...

MONEY? Yeah, so now you've built up this incredible amount of money that you got a tax benefit, right, a tax benefit of taking off your taxes. Now you can have to pay taxes on that money. The Myth, the premise, right, is in your retirement years your tax rate will be lower. Hopefully that's true, but you're gambling. So what we do? We actually come up with a plan to make sure that that tax bomb in the future won't hit. HMM, and we mitigate that. And you mentioned that the government can change the rules at any point and you said that they just did. What what rule was that that they changed? So the cares act. So if you had an inherited IRA, used to be able to stretch it over your entire lifetime. Now is stretched over ten years. So a lot of people are caught off guard with that inhabited IRA. I...

...get clients all the time that they realize that the rules of just changed recently and now they have to make other plans with that money. But they were planning on using that money for four different things, but now they have to be taps on it. Got Believe they were receiving they're going to receive less because they have to pay tax. HMM. Oh, they got to the pay tax in the going to receive less money. So the tax planning is best to have a plan very early, not at the last minute. People wait to the last minute and then they decide, Oh, you know what, I need a plan for my taxes. You need a plan now. HMM. So go ahead. Yeah, plan immediately, because if you don't plan now, the IRS is going to plan for you and I don't think they're going to plan in your favor. I think it's going to be their...

...favor. So maybe for somebody that's that's listening, they're thinking, okay, I do need to plan now. What are some practical strategies to help them be in a good position going into retirement with with their taxes? Super Simple one is a rough conversion. I Ra the idea is very simple and it could be simple, but there's a lot of moving parts even with that, because just diversification inside your off is diverse, Ocasius side the cash aspect of your taxes. So we have to look at your cash, your tax free the diversification, decide both and make a determination on how much we need to convert. And you know, we'll walk you through that process and we'll analyze it together figure out, you know, how much you can bear in taxes, because you have to pay taxes on it. You know, you have to pay the Piper, right. Do you have kind of an ex a...

...story and experience that you can share of somebody that was blindsided by the time bomb of retirement and how you help them, or somebody that made some good decisions with their taxes? Yeah, actually both. Yeah, so I have a young lady, sixty four, blue sixty four years old, and she saved a lot of money. She's really, really well, but now she's sitting in with over a million dollars in her IRA account. So now she's going to retire and she's going to have to start taking distributions, right, I mean not RMD's Arm d's Are seventy two now, but she would like to live off some of that money. And now he's realizing she's going to have to pay taxes. So we're developing a plan now to mitigate that tax bomb for her. We're going to mitigate her taxes and you know, I...

...don't know if we're going to bring her down to zero, where she wants to go, but we'll definitely bring it down. You know a lot. And that's with careful, careful tax planning, without our CPA and tax strategist. Yeah, and what about somebody that that made some good decisions? I mean, do you have an experience of client that's made some some solid choices there? Ye, yes, we have a doctor, okay, who realized very early, really young, smart doctor, and he came to US super early and said, you know what, I know I'm going to make a lot of money, I want to save money and I don't want to pay taxes down the road. Let's come out with a plan now and let's be proactive and put together a plan that in the future my kids and my family will be secure. And right now we're really have an incredible tax plan for this guy. We're down the road. He's going to be fine. HMM. Well, and I think you used a word I like, which is...

...proactive. I think that's what this is all about. It's making decisions proactively and making choices ahead of time where you're not caught off guard later in life. A great first step to being proactive and making smart choices, I think, is picking up a copy of your book. It's called putting your retirement interests first. It's a prioritized approach to protect your future and turn your dreams into a reality. It's by Robert Cannon. You can pick up a copy on Amazon. Be Sure to go do that, Robert. Thank you so much for talking with me. Thank you appreciated. Thanks for listening to the putting your retirement interests first podcast with financial expert and number one Amazon best selling author Robert Cannon. To request a copy of Robert's best selling book or to have a conversation with him about your financial future, connect with Robert through his website, cannon wealth solutionscom.

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