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

Things Your Financial Advisor Might Not Be Doing

December 7, 2023

Sometimes people get advice from financial “professionals” who maybe aren’t the right fit for their needs. Today, we discuss some of the things your advisor might not be talking to you about.

Read More

Tax Consequences

November 30, 2023

Taxes are a major part of your life, especially your life in retirement. Having a good understanding of how you can prepare may save you in the long-run. Discussing your options with a financial advisor can help point you in the right direction. Listen in as we chat about tax consequences in today’s episode.

Read More

Cutting Corners Financially

November 21, 2023

Sometimes we want to take the easy way out instead of the smarter way. Today, we talk about ways people have tried to cut corners financially and where that falls apart. Think you can take extra risk to make up for lost time? Letting your financial life fall to disarray?

Read More

Risk Aversion

November 16, 2023

No one loves losing money. So how do you strike the right balance of investing vs. being overly risk averse? Eric talks through how he guides clients through this dilemma. You might be surprised to find out your investment accounts are riskier than you realized!

Read More

Tax Planning in Retirement

November 9, 2023

Next to income, tax planning is the most important thing Eric focuses on with his clients. If you can control how much tax you pay, it’s more money you get to keep, spend, and enjoy. Retirement is a prime time to focus on tax planning as you have more opportunity to control the taxes you owe. 

Read More

Overconfidence in Your Financial Life

November 2, 2023

When can overconfidence cause catastrophe? If you are setting your financial goals based on a rule of thumb or a certain arbitrary dollar amount, you might want to reconsider. Having overconfidence, especially in the wrong things, can lead to financial disaster.

Read More

Learning From Financial Mistakes

October 26, 2023

Sometimes we learn from our mistakes, and unfortunately, sometimes we make the same mistake over and over. Having a financial advisor can help you navigate through your financial decisions so you don’t get stuck in the same rut of financial mistakes on repeat. In today’s episode, Eric will share some of the mistakes that he sees people make frequently. 

Read More

The Hierarchy Of Retirement Needs

October 19, 2023

You may be familiar with Maslow’s hierarchy of needs which breaks down a human’s needs into five different tiers. In today’s episode, we apply those tiers to what you need when retirement planning. Have you planned and saved in a way that will cover all of these needs?

Read More

Finances with Forrest Gump

October 12, 2023

The classic movie, Forrest Gump, is full of great quotes. We see how some of those quotes can be applied to your finances. From figuring out what to do when life isn’t going just like you thought to learning from past mistakes, there are a lot of takeaways from Forrest.

Read More

Financial Matters People Put Off

October 5, 2023

Humans can be really good at procrastination. When we have the basics covered, it’s easy to put off the decisions and actions that we don’t want to deal with just yet. Today, we talk about some of the financial matters people are prone to put off and what you would be better off tackling right away. You might be surprised to find it wasn’t so hard to handle after all!

Read More

Leave a Comment