Navigating the New Administration’s Tax Plan

Today’s Prep:

What kind of tax plans have been proposed lately? These plans may cause you to strategize differently when it comes to your financial plan.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Most tax changes the government wants to propose will impact the “rich” but it always seems to have a trickle-down effect. What kind of tax rates will be changed? Who will it really affect? Remember that income tax rates and investment tax rates are different.

Where could this change everyday life? If the corporate tax rate goes up, this has implications on the goods and services they provide. Corporations and businesses with better tax rates often create more jobs. Then if corporate earnings go down, this affects the stock market and those with investments.

When you make a lot of money, you don’t typically just store it all in the bank. Rates that incentivize people to invest, which helps grow the economy. People will search out ways to build wealth and legally shield their money from so much taxation.

Another big proposal is the elimination in the step-up in basis. How will that impact you or your heirs? What is the estate tax currently? The stretch IRA is also no longer allowed. Is generational wealth being targeted by these tax proposals?

As retirees we have to think about all of these things when financial planning. How will you deal with these proposed changes? Everyone hopes to leave at least something for their kids, so you have to be strategic in your planning.

Listen to the entire episode or click on the timestamps below to skip ahead.

[1:08] – Top individual tax rates will increase.

[3:50] – What happens when the corporate tax rate goes up?

[5:42] – Long-term capital gains tax would almost double.

[9:47] – What would the elimination of the step-up in basis mean?

[12:52] Is generational wealth being targeted?

 

Today’s Takeaway:

There’s all kinds of things about these taxing policies that are going to be detrimental to the economy, which is going to cause people’s valuations in the stock market to come down a little bit.

-Eric Peterson

Related Resources:

Retirement Planning Rules of Thumb

Do You Agree or Disagree with this Retirement Advice?

What Creates A Sense of Urgency With Your Financial Plan?

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Economic News and Sensational Headlines

June 23, 2022

How much should you pay attention to some of these recent financial news headlines? Eric shares what he thinks and what matters when it comes to your financial situation.

Read More

Conventional Wisdom

June 16, 2022

Should you follow conventional wisdom when it comes to your financial decisions? Eric shares when the conventional wisdom might not be best.

Read More

Retirement Vacation Planning

June 9, 2022

Let’s plan the vacation of your dreams: retirement. More than simply a week away, you want to spend the right amount of time and energy thinking about this major season in life.

Read More

Financial Things We Can All Relate To

June 2, 2022

What are we all facing and wondering about in our financial futures? Eric talks through a few topics you might have had on your mind lately.

Read More

Mailbag: Should I Move my Mom’s Money into Investments?

May 26, 2022

Where’s the best place for your money to go? Several people are considering where their money should be, so Eric answers three questions from the mailbag for today’s show.

Read More

A Perfect Match: Tennis and Retirement Planning

May 19, 2022

Ready to ace your retirement plans? Let’s talk tennis and see how much it relates to your financial plans on today’s show.

Read More

Mailbag: Money Management Tips For Younger Couples

May 12, 2022

What financial advice does Eric have for younger couples? What can you do to reduce next year’s taxes? Eric answers these questions and more from the mailbag.

Read More

Building a Plan for the Long Haul

May 5, 2022

What do you need to get you through the long haul of life? Eric talks us through what this looks like in your financial plan and how to build it with an eye on a distant horizon.

Read More

What Do You Need to Know About Today’s Inflation?

April 28, 2022

Everywhere you turn there’s a headline about inflation but what do you need to know about what’s going on? Eric weighs in on the recent numbers and what you can do about it.

Read More

Mailbag: Should I Save Elsewhere Besides My 401(k)?

April 21, 2022

What kind of savings do you really need for retirement? Are you working with the right advisor to get you there? Eric answers three questions from listeners.

Read More

Leave a Comment