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

Mailbag: Do I Have Too Much in Cash?

November 22, 2022

When people are in retirement or closer to retirement, the accessibility of money goes up. So, what does that mean when you have to take out RMDs? How do you know if you have too much money in the bank? Talking through this with an advisor might help you make the right next steps with your money. We also talk about what mistakes people are prone to make if they try to DIY their retirement planning without a financial advisor.

Read More

Retirement Planning with Mr. Miyagi

November 17, 2022

Eric answers three questions from the mailbag today, all common scenarios that you might one day come across yourself. Find out what he has to say!

Read More

Mailbag: Is It Irresponsible to Retire Early?

November 10, 2022

Eric answers three questions from the mailbag today, all common scenarios that you might one day come across yourself. Find out what he has to say!

Read More

Retirement Red Zone

November 3, 2022

Let’s talk football! As fans of the game, we make some comparisons between football terms and retirement planning. How can you win when it comes to our financial plan? Understanding the strategies ahead of time and having the right team behind you can make all the difference.

Read More

Mailbag: Do I Need To Budget For Retirement?

October 27, 2022

Day-to-day, Eric works with a lot of people as he helps them navigate a variety of financial decisions. But what might seem rare to you could be a more common occurrence to wit-ness in his office. How often does Eric come across scenarios like these? You might be surprised by some of the answers!

Read More

How Often Do These Financial Situations Happen?

October 20, 2022

Day-to-day, Eric works with a lot of people as he helps them navigate a variety of financial decisions. But what might seem rare to you could be a more common occurrence to wit-ness in his office. How often does Eric come across scenarios like these? You might be surprised by some of the answers!

Read More

Mailbag: Should I Get a Prenup?

October 13, 2022

What are the financial implications of getting married later in life? There are a lot of variables that go into this financially speaking. Have you talked through what happens when one of you passes away? Do you or your fiancé have children? Eric and Marc go over what this may look like and also answer two other questions from the mailbag.

Read More

Financial Advice from Seinfeld

October 6, 2022

Ever take financial advice from your favorite TV show? Believe it or not, you might learn something, even from an unlikely source. Inspired by a classic sitcom, today we take some quotes from Seinfeld to apply them to our financial plans.

Read More

Mailbag: Which Investment Should I Withdraw From?

September 29, 2022

Whether you are nearing retirement or wanting to buy a new car, taxes are often a big part of the conversation. Thinking through how and when to withdraw from your investments strategically can make all the difference in what taxes you pay afterwards.

Read More

Investing and Coffee

September 22, 2022

In the fall, a lot of people are ready to cozy up with a coffee or latte in their favorite mug. For fun, we talk about the different types of coffee drinks and what kind of investor that might make them. Do you take your coffee the same style you do your investing? Which one are you?

Read More

Leave a Comment