Episode 20241019 - 5 Misunderstandings and 5 Ways Taxes Rise in Retirement

Episode Transcript

Speaker 1 (00:00):
All these years you've saved up planning for secure retirement,
but if you're not careful, it will be the irs
that's living it up when you retire by taxing your
hard earned money. Welcome to the Maggie Tax and Financial
Hour with Robert and Chris Maggie of Maggie Tax Advisory
and Financial Group. With over thirty years of combined experience
and tax savings, income planning, and investment opportunities, Robert and

(00:22):
Chris share advice and tax planning strategies designed to protect
your retirement nest egg from Uncle Sam. Your questions and
comments are welcome during today's program by calling eight one
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty or visit Maggie
Tax dot Com. That's Maggi tax dot com and now

(00:46):
your host for the Maggie Tax Financial Hour on nine
seventy WFLA. Robert and Chris Maggie.

Speaker 2 (00:53):
Welcome everyone. I'm Chris Maggie and thank you so much
for tuning into our show. I'm here with my dad
and cost of the show, Robert Maggie. Today we will
welcome you and we want you to visit our website,
Maggie Tax dot com. There's so much information right there
at your fingertips. There's seminars, there's learning about your tax bill.
There's so much to discover right there about your personal finances.

(01:13):
So pick up the phone, schedule time to meet with
us a three to three Maggie Tax. That's eight three
to three Maggie Tax. Just visit our website, Maggie Tax
dot com. So today we're going to talk about five
personal finance misunderstanding things that you should not fall victim to.
So welcome Dad, and let's jump right into the show.

Speaker 3 (01:31):
So many people make mistakes, as we see every day
when we meet with clients. But handling your personal finances
it's essential to comfortable living, but it can be much
easier said than done when you don't really understand what's
going on. Knowledge is power, and like we always say,
you don't know what you don't know. So meeting with
a financial advisor like Maggie Tax, we can help you out.

(01:52):
And with so many misunderstandings that's floating in the air,
getting a full grasp on the subject, some people think
it's impossible because some people think I can't learn it.
But you can, and Maggie tax is here to clear
up some of these misunderstandings so that you don't fall
victim to them.

Speaker 4 (02:08):
So let's talk about number one.

Speaker 3 (02:09):
Number one, no investment account type is safer or riskier
than another. Let me repeat that no investment account type
is safer or riskier than another. And some people may
opt out of their four to one K in favor
of an IRA or roth IRA or vice versa because
they believe that one account type is safer than the other.
And I think, Chris, what we have found out on

(02:31):
that is they don't understand what that account is. The
definition of a qualified account or a four to one K,
and what makes an investment risky has to do with
the stock that's being invested in. That's invested in, not
the account that you're using to invest with. So kind
of separate that. When an IRA four one K is
and you know what's in that account.

Speaker 2 (02:50):
Well that's just it. You know, an IRA and a
four one K. There's both qualified accounts, And basically what
that means is that you have restrictions on those. You
can put a certain amount in. If you put the money,
you have to wait a certain amount of time until
you start taking the money out. And when you have
an IRA FOURU one k, most of those are pre
tax dollars, so you get a tax deduction going in,

(03:10):
but in the future it's all taxable. But they also
have qualified accounts and also WROTH four to one ks
where it's vice versa, where it goes ahead and you
put the money in. Today it's after tax going in,
but in the future it's all tax free. So these
are things that you have to talk about. But when
you talk about the risk, technically you can invest in
the exact same stocks in an IRA as you can

(03:32):
in a form one K. So the misunderstanding is that, well,
I'm just going to take my money out of a
FOURMU one k to be safer in an IRA. You can,
but you have to make sure that you understand the
vehicle that you're investing your money in.

Speaker 3 (03:43):
I agree with that, and one of the main differences Chris,
between these accounts involves the rules that you must follow
in order to use them you mentioned a few minutes ago.
Some may have a funding limit, while others may have
penalties for pulling out early. That's a big problem where
people don't realize underage fifty nine and a half in
a qualified account. You take money out of a four
one K or an I area, you're going to wind

(04:04):
up with a penalty ten percent penalty.

Speaker 4 (04:06):
For early withdrawal and a tax.

Speaker 3 (04:07):
And many times when we see a tax return, I
know people are sometimes you know, they need money and
they take it out without the direction of wait, we
can take it out of another account that is not
going to get a penalty or a tax. And Chris,
we see that so many times.

Speaker 2 (04:20):
That's it. So if you have a distribution that you
need to make, make sure you take it from the
right account. So pick up the phone, schedule time to
meet with us. Let's go over that for you. There's
different types of qualified plans and it's very essential that
you pull out the funds from the right spot to
avoid the penalty and also the tax.

Speaker 3 (04:37):
You know, and again that's one of the reason why
we're doing the seminars. Go to our website Maggie tax
dot com, look for seminars. Register for our state planning,
tax planning and social security planning. We discussed this and
this is what you need to do to learn. To
get educated. You have to go back to school, start
from the ground up. And understand what you have because
if you sit there and do nothing, that's not the

(04:57):
plan and that's not going to solve your problem. So
get it educated and visit our website, Maggie tax dot com.
So number two, diversifying funds does not dilute your ability
to make a profit. So if someone tells you that
there's no point in making a multitude of small investments
because you won't make as much of a return, then
they don't understand the first rule of safe investing. So

(05:18):
you should never put all your eggs in one basket.
We agree with that, and that's especially true in receiving stocks.
If you put your entire savings into a single stock
and listen and it doesn't turn out in your favor,
then there's not much that you can do. But by
having a diverse investment portfolio with a wide range of
various stocks, it's easier to control your overall profit. And Chris,

(05:39):
that's what we do when we talk about manage money.
There's more choices than people and you come across this
every day. In a four to one K or a IRA,
they have limited choices. But in a managed account, and
talk about that, there are more portfolios to choose from
to do what they want for risk or safe money.

Speaker 2 (05:55):
Well, that's just it. You know, many people just really
don't know what they don't know, and that's okay because
they're just not educated fully in and where you can
invest your money. But in a formal K you are
limited to different types of mutual funds. Most of the
time you maybe have ten or fifteen or maybe even
twenty different funds to choose from. And you might have
three large growth funds or two small cap funds, maybe

(06:17):
one international fund. But again you might not have a
variety of options to choose from. But rolling your money
over into an IRA individual retirement account, you have that
ability to invest in multiple investments that you just don't
have in the formal K. So you're talking about diversification
and should you have one stock, should you have multiple

(06:37):
amounts of stock. So that's why the managed portfolios is
so important. If you're looking for an investment plan, we
can help pick up the phone, schedule time to meet
with us. Because our investment side of this, we have
investment portfolios that have a specific purpose, whether it's dividend
producing portfolios, whether it's a buffered index portfolio, whether it's
an inflation protection portfolio, whether it's an absolute yield portfolio

(07:00):
or maybe an aggressive portfolio with the best large cap
small cab stock. So we have to look at this
based on your risk. But when you come in to
meet with us, we can first analyze what you currently
have and see if there's something that might be better
for you where you can take less risk get more return.
These things that we could talk about when you come
in and meet with us. So pick up the phone,
schedule time to meet with us. Eight three three Maggie Tacks.

(07:23):
Get a second opinion on your investments because your current
advisor cannot do that for you. Eight three to three
Maggie Tacks.

Speaker 3 (07:30):
So thing about what we're just talking about. Is it
easy for one person to do all that? No, If
you get some financial advice from a complete planner like
Maggie Tax, then you get all the questions answered and
then you can make And the keyword is choice, your
choice of what you should do.

Speaker 4 (07:44):
So if you want safety, we can give it to you.
If you want risk, we can give it to you.

Speaker 3 (07:48):
And many times, Chris, we meet with husband and wife
and the husband wants more risk, the wife doesn't. We've
seen that so many times, and in the end what
happens is when you satisfy the wife or the husband
what they want, it's a lot easier to present the
plan and they get it. They finally understand I didn't
know that. My advisor many times doesn't tell them that.

Speaker 2 (08:07):
Well, let's just say, you know, let of people really
just don't know what they can and can't do, and
they just think, well, one thing four one K or
one thing stocks. Well, that's just not the case. There's
a lot of different options that you could invest your
money into that you have a purpose with. There're safe
accounts where there are no fees, there are risky accounts
where there are fees. There's loads in some positions out

(08:31):
there which you don't want to have to get into
if you don't have to. So meet with the right advisor.
Make sure that you're asking questions. But when you come
meet with us Maggie Tax Maggi Investments, we'll sit down
and we'll educate you on what you can and can't do,
and then we'll align that with the risk that you
want to take and also the goals and your income.
And that's why we do complete planning. It's tax planning,

(08:52):
investment planning, estate planning, social security maximization planning. That's what
we do. Pick up the phone eight three to three
Magi tex.

Speaker 3 (08:59):
And also it's called buck get planning. What Chris is mentioned,
you know income planning, you know a safe money and
later money. Many people think they have a pile of
money and it's got to be the whole pile that
they start taking money out of. But that's not correct.
If you do proper planning for income today that you
need income maybe in five years or ten years, and
then you put all this together with social security and

(09:19):
maybe a pension. Now you have a plan. Now you
have a retirement plan that you can know that you're
going to get guaranteed income. So when we talk about
our seminars, when we talk about a state planning and
tax planning and social security planning, I encourage all of
you to go to our website Maggie tax dot com
and register for the three and one seminar. Because without
a will, probate court and the estate decide what happens

(09:41):
to your assets after you've gone, and that's going to
impact many for a state taxes, so enhanced planning could
help you reduce your estate's exposure to taxes. Many of
you listening know that you've gone we parents have gone
through probate. What are you going to do about it?
What about your tax bill and retirement? Could it be
too big? In thirty seconds, we'll show you what your

(10:02):
tax bill is going to be. If you have an
IRA or a four to oh one K, or even
a TSP or any tax deferred retirement account, you will
want to know what your tax bill is going to be.

Speaker 4 (10:11):
And then last, social Security.

Speaker 3 (10:13):
Social Security can be confusing, so for many of you
that are getting to be on Social Security or trying
to figure out when you should take it sixty two,
sixty six, or how it's taxed. That's why you need
to register for the three and one seminar. Go to
Maggie tax dot com look for seminars. We have seminars
every week and they're very educational. It's a lot of fun,
but you're going to walk away with information. Maggie tax

(10:36):
dot com. Pick up the phone, give us a call
eight three to three Maggie Tax. Set a time today
and let's get together. And just another reminder, Every Sunday
at ten thirty, tune into the Maggie Tax and Financial
Show on ABC TV. That's ten thirty on ABC TV
to the Maggie Tax and Financial Show eight three to
three Maggie Tax.

Speaker 1 (10:58):
Stop planning for Uncle Sam's or timeirement and start planning
for your retirement as we return to the Maggie Tax
and Financial Hour with your host, father and son Robert
and Chris Maggie. For additional information on how you can
create a tax free retirement, visit Maggie Tax dot com.
That's m a gg I tax dot Com or call

(11:19):
eight one three three two two twenty five twenty. That's
eight one three three two two twenty five twenty now
your host for the Maggie Tax and Financial Hour, father
and son from Maggie Tax Advisory and Financial Group, Robert
and Chris.

Speaker 3 (11:35):
Me Welcome back everyone and thanks for joining us. My
name is Robert Maggie and I'm here with Chris Maggie
and you're listening to the Maggie Tax and Financial Show.
Be sure to visit our website, Maggie Tax dot com,
click on seminars and register for one of our three
and one seminars coming up. And also if you have
an IRA or four oh one K click on the
retirement calculator and see what your retirement tax bill will be,

(11:57):
because in thirty seconds we'll send you the report and
then pick up the phone give us a call eight
three three Maggie Tax. Now, I'm going to try Chris
and I going to try to do something that we
haven't done before. But I want to do one experiment
for all of you today that are listening, and we're
going to share our presentation without asking you one question.
And this is something that we do all the time
because this is critical. So let's just start by saying,

(12:20):
mister and missus customer, thank you for meeting with us.
I'd like to talk with you about some challenges that
I believe that you and your family should be very
worried about. And if these challenges are not addressed, they
could change your life forever. And the first and most
important concern is taxes. And with everything happening in our country,
governments at every level will cry more and more revenue.

(12:43):
Income taxes will increase, property taxes, sales taxes, excise taxes,
and inheritance taxes will increase, just to name a few.
And the tax that you and your family should be
most concerned about, will definitely be income taxes. So let
me pause there for a second, because these are concerns
that Chris, when we meet with people, this is what
happens when we talk about it, because we have to

(13:05):
get you to talk about those issues, not us.

Speaker 4 (13:07):
Correct, how do they affect you? And what are your
opinions and what are your thoughts on it?

Speaker 2 (13:11):
Well, that's just it. I mean, how does it feel
for you to hear that information? And since only around
ten percent of Americans make more than one hundred thousand
dollars per year, and the only way to increase revenue
will be to increase taxes dramatically on those ten percent.
But here's another surprise. The government will also have to
increase taxes on the other ninety percent because that is

(13:33):
where most people are. So the smaller tax increase will
still help the government to begin to achieve their revenue requirements.
And the biggest tax surprise of all will come when
you want to transfer your tax deferred retirement plans such
as your iras, your Form one k's, your four O
three b's, and those four to fifty seven plans. They
are all deferred accounts and guess what, they're fully infected

(13:56):
with taxes. That's where the revenue is going to come.
So if you have these iras and you have these
retirement accounts, guess what, they're growing, and they're growing and
they're growing, and guess what, they have a question mark
tax rate when the money comes out. You have no
idea what tax rate you're going to pay because it's
all tax deferred money. It's ordinary income when it comes out,

(14:17):
and guess what, they can change the tax rules. So
the Internal Revenue Service has the first mortgage on that
money and they are paid first.

Speaker 4 (14:26):
So, yeah, you have.

Speaker 2 (14:26):
A million dollars in your IRA, don't go around saying
that because guess what you don't you have five hundred
thousand in there or two million, It doesn't matter because
guess what, it's taxable, and the Internal Revenue Service has
its first mortgage on that money. They get paid first
before your family receives anything. Think about that for a minute.

Speaker 3 (14:46):
So the question after what Chris said is why. So
let me give you the answer. Because it is always
taken in a lump sum, and if it is piled
on top of the beneficiary's current income, the income tax
liability can increase thirty forty or fifty percent.

Speaker 4 (15:01):
And here's the part. You know a lot of the.

Speaker 3 (15:04):
Beneficiaries they see a lot of money, they want to
take a lump sum. But what Chris is referring to
and what we're talking about is the tax bill. What's
it going to be? So you essentially turn yourself into
a tax collector for the Internal Revenue Service and that's
where they said they would hire.

Speaker 4 (15:18):
More higher s agents.

Speaker 3 (15:20):
No, you now know you have a new job, because
how many of you knew that because you're going to
be the tax collector paying IRS?

Speaker 4 (15:27):
Am I right or wrong?

Speaker 2 (15:28):
That's right? So that's why if we were in your shoes,
we would do something about it. You know, if you
listen to today's show and you have an IRA, you
have an investment, and you don't know what to do
and should I put the money in a CD or
should I put the money in the market or what
should I do with it? Well that's where you need
to pick up the phone and schedule time to meet
with us, because not only were we talking about taxes, maybe
you could do a strategic rollout. Maybe we can show

(15:49):
you how to roll out that money over a five
or seven or ten year period where it can go
ahead and you can build cash value, it can build
tax free money, and why not put yourself in position,
as we talked about early in the show, to take
advantage of these opportunities when they change. Taxes are on
sale right now, and we have plans that will help
you reduce or even eliminate that income tax liability. Visit

(16:10):
Maggie tax dot com, click on the retirement calculator and
in thirty seconds we can tell you what your retirement
tax bill will look like. Make an appointment to meet
with us and we can show you how to not
be an IRS collector. It's called tax planning. That's what
we do. We do income planning, investment planning. When you
coordinate all three. Oh my gosh, now you have a

(16:34):
powerplaqu plan because it's tax free money. Think about this.
If you have income coming in and it's all taxable,
you don't have that income. But what if you have
income coming in and guess what, you don't have to
worry about Uncle Sam and the tax rates. Think about
that for a minute. If you want to be there
and your advisor's not putting you there, why not? Why

(16:54):
aren't you doing something about it? So it's very simple
pick up the phone, schedule time to meet with us.
We evolves on both sides of the bay to help you.
This is what we do each and every day. Eight
three three, Maggie tax.

Speaker 4 (17:06):
I'll give you another example.

Speaker 3 (17:07):
I met with a woman last week and she had
her money in ninety percent of it was in risk.
And the question we asked her, as we ask everyone,
it's safety of your money important? And she said, of
course it is. Why would you even ask that? And
I said, well, because your statement tells me different. And
she said, well, explain what you mean. And I said, well,
show in here that you're ninety percent in risk. She said, well,
I don't want that. So what we basically showed her

(17:29):
was a solution where she could have safety, she could
have guaranteed income, and she could have growth without paying fees.

Speaker 4 (17:36):
It blew her away.

Speaker 3 (17:37):
She said, well, my advice is not listening to me,
is he? I said no, And that's how we did it. Chris,
It's just explaining the language because she was so used
to taking what they told her and that's not it.

Speaker 2 (17:48):
Well, that's just it. You know, you have an example,
a story. I do too. And what's interesting is that
people come in and they say, well, all adviser are
the same, they just deal with investments, and that's not true.
I love it when people say, well everyone lost money
back in two thousand and eight to two thousand and one,
or during COVID everyone lost money. Well no, that's that's
that's not true. Or you know what, everyone's paying taxes. No, no, no,

(18:11):
and everyone's not paying taxes. So if you're looking for
an income plan, we can help. If you're looking for
a tax plan, we can help. If you're looking for
an investment plan, we can help. We can analyze what
you currently have. You know, my dad mentioned a perfect example.
A client came in and they wanted safety, and guess
what they were being an aggressive portfolio? Is that you

(18:31):
out there? Is that you with the Form one K?
Is that you with your IRA? Is that you with
your brokerage account? Is that you do you even know? Well,
if you don't, then we can help you. Pick up
the phone, schedule time to meet with us. Eight three
three Magi tax. We do income planning, complete planning, investment planning,
we can help you there, social Security maximization planning. My gosh,

(18:52):
that's what we call the Maggie Plan. Eight three to
three Magi Tax and don't forget. Every Sunday, tune into
ABC TV for the Magi Tax and Financial Show ten
thirty am.

Speaker 1 (19:02):
Stop planning for Uncle Sam's retirement and start planning for
your retirement as we return to the Maggie Tax and
Financial Hour with your host, father and son Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie Tax dot com. That's
ma Ggi tax dot com. Or call eight one three

(19:25):
three two two twenty five twenty. That's eight one three
three two two twenty five twenty Now your host for
the Maggie Tax and Financial Hour, Father and son from
Maggie Tax Advisory and Financial Group, Robert and Chris Maggan.

Speaker 3 (19:40):
Welcome back, everyone, and thanks for joining us today. My
name is Robert Maggie and I'm here with Chris Maggie.
Today we've been talking about our three and one seminar
on estate planning, on social security planning, and also tax planning,
which we're going to get into in a minute. So
we've discussed social security planning, but at our seminar, are
you going to receive a social security guide? You're going
to receive a marketing about estate planning so that you

(20:02):
can take it home and see exactly what you need
to do. Because I feel, and I know Chris does,
education is so important. So go to our website, Maggie
tax dot com, look for seminars and register.

Speaker 4 (20:12):
All the seminars are there.

Speaker 3 (20:13):
You can pick the ones you want and it's free,
there's no cost, and it's going to be so good
because we're giving out another item of my book called
stop funding Uncle Sam's retirement and everything in there. And
I do this at every seminar. At the end, when
you look at the you know what's in the book,
everything that we talk about there, you can take it
home and read it. So I just want to recap

(20:34):
one thing and then we're going to get into it.
But we've already talked about a state planning, so without
a will, probate court and the estate decide what happens
to your assets after you're gone. If that's what your
plan is, that's not the plan we would like you
to get. Number two on social Security, it can be confusing.
They have fra pia cola irma. What does it all mean?
And we go over that at the seminar. So at

(20:56):
Maggie Tax Advisory, Social Security and Tax Seminar, we're going
to cover all this. So now Chris, we're going to
get into the big topic. Could your tax bill and
retirement be too big? And as many people know, we
do tax planning, we do income planning, and we do
insurance plllning. But Chris, taxes right now are so important,
are going to be so important in the next couple
of years when they expire. So what are the five

(21:18):
ways that taxes can rise in retirement that we can
talk about.

Speaker 2 (21:21):
Well, that's just said. And you know, if you can't
attend the three and one seminar, don't be alarmed. Schedule
time to be with us. Let's get together. We have
offics on both sides of the base, so we can
schedule time that's convenient for you. So it's important to
get together. Let's talk about a state planning, tax planning,
income planning, investment planning. And Dad, you mentioned it five
ways taxes can rise in retirement, So let's start with

(21:43):
number one. You change tax brackets. Your federal tax bracket
determines what percentage of your income you will owe in taxes.
Some savers may not maintain the same tax bracket throughout retirement.
And one reason for a tax bracket change in retirement
is if a spouse passes away and the surviving spouse
moves from filing married jointly to filing as a single filer.

(22:05):
So single file of tax brackets are applied to less
income than join file rates. So the total amount of
taxes you could pay could go up as more of
your income is subject to higher bracket rates.

Speaker 3 (22:18):
And we see this every time during tax season when
something like this happens, So your tax bracket can change.
And that's important to understand. Number two, tax brackets change
around you. So even if your filing status stays the
same in retirement, tax brackets could change around you. And
this occurs when Congress passes new laws impacting tax brackets.
And for example, in twenty seventeen, Congress passed and the

(22:41):
President signed into law comprehensive tax reform and sometimes known
as the Tax Cuts and Jobs Act sometimes known as
the Trump Tax Cuts. This legislation temporarily lowered tax bracket
rates for many Americans, but this law and its lower
bracket rates will expire.

Speaker 4 (22:58):
In twenty twenty five.

Speaker 3 (22:59):
Mean in twenty twenty six, tax bracket rates are stated
to go back and revert back to the older higher levels.
Many people don't know this, so if you are evaluating
your retirement assets based on today's tax rates, it's important
to remember those rates will likely be hired starting in
twenty twenty six, even if your income stays the same.
And Chris, this is tax planning. This is what people

(23:21):
are not paying attention to.

Speaker 2 (23:23):
That's why it's so important to get a mock at
tax return filed. We can show you what that would
look like today, so in the future you're not surprised.
And many people come in they have no idea about taxes,
and we can show them that you can have more
income on a tax favored basis. We had a client
that came in last week one hundred thousand dollars a
year in income and guess what they're paying no tax?

(23:44):
Why because they have income coming from Social Security. They
don't understand how that's taxed. With the other income that
they have. They're under the threshold income. And guess what
they have nice income coming in for the rest of
our life and paying no taxes. Could this happen to you?
We can look at this why roth. Iras are important.
That's why if you have iras and qualified accounts, you
need to understand that these are accounts are infected with taxes.

(24:06):
But we're talking about ways that taxes can rise in retirement.
And think about it. The twenty twenty five that Trump
tax cuts expire. So what are you doing now to
put yourself in position to take advantage of these opportunities.
That's what we're discussing today. So pick up the phone,
schedule time to meet with us. Let's talk about your
tax situation. Let's talk about your income, your investments and

(24:27):
how they all correlate together. And that's what we could do.
So we just talked about how you can change your
tax brackets. Number two, tax brackets can change around you.
What about number three, deductions are eliminated. What are we
talking about here.

Speaker 3 (24:40):
Well, deductions can be eliminated, but your tax bracket is
only one factor that can potentially impact your taxes in retirement.
How much of your income is subject to taxation is
another way that you could possibly pay more taxes in
retirement than you planned on. So if you make one
hundred thousand a year and you can deduct twenty thousand,
you likely pay taxes on eighty thousand of taxable income.

(25:02):
But if next year you can only deduct ten thousand,
guess what you would suddenly pay taxes on ninety thousand
of taxable income. That's what we're talking about here. That's
going to happen. Your bracket didn't change, but you ended
up paying more in taxes because more of your income
was subject to taxation. And in twenty seventeen the Tax
Cuts and Jobs Act legislation, we saw an elimination of

(25:25):
some deduction. So it's an area right now Christa Congress
could return to in the future.

Speaker 2 (25:30):
And that's just said. So that's why it's important to
do a tax review and we talk about what accounts
do you have our subject to taxation. That's what we're
discussing here. That's why your tax plan is so important
as your investment plan and so important as your income plan,
because why have less income because they're getting eate away
from taxes. So what accounts do you have are subject

(25:53):
to taxation? If you don't know, we can show you.
Pick up the phone. Schedule time to meet with us.
Let's get together a schedule time. We have office on
both sides of the Bay Maggie tax dot com or
just pick up the phone schedule time eight three three
Maggie Tax. So we just talked about three ways, so
let's talk about the fourth way. The way assets are
taxed changes, so let's elaborate more on that.

Speaker 3 (26:16):
You could also end up paying more in taxes in
the future if the government changes the way retirement assets
are tax and one example of this could be Social Security.
And listen, before nineteen eighty four, social Security benefits were
not taxable, and based on legislation passed in nineteen eighty three,
social Security payments became taxable up to fifty percent of

(26:37):
the benefits and then in nineteen ninety three that amount
was raised to eighty five percent. So what Congress did
is Congress could potentially pass new legislation making an even
higher amount of the benefit taxable for some retirees. And
if that happened, you could pay more in taxes because
more of your time and income we subject to taxation.

Speaker 4 (26:56):
People.

Speaker 3 (26:57):
This is what legislature risk is. This is why we
talk about this is why the three and one Seminar
on a State Planning on Taxes and Social Security. Folks
attend this seminar, go to maggietax dot com, click on
seminars and register for the event and Chris, those are
four of the ways, but there's one more, the fifth way.
What about new taxes if they are enacted?

Speaker 4 (27:16):
What happens?

Speaker 2 (27:16):
Now, that's just said, you know five ways taxes can
rise in retirement. We're talking about the fifth way new
taxes are enacted, and that's the final straw here. The
final way your taxes in retirement could be higher than
what they are today is if Congress passes new taxes
on retirement assets. There was discussion of this during the
congressional debate over President Biden's proposal Build Back Better agenda,

(27:39):
and this legislation on their consideration in Congress included trillions
of dollars in new government spending and to offset that spending,
trillions of dollars in new taxes. What does that mean
for you? So, for example, one tax provision, including the
House Democrats Bill, proposed a new annual required minimum distribution
are MD from qualified retirement accounts like iras and form

(28:02):
one case, so every year, if currently if you're over
age seventy three, you have to take the required minimum distribution.
So this R and D would be applicable to any age,
and would be triggered when a saver's retirement assets reach
a value above a congressionally mandatory limit. Think about that
for a minute. They want you to save. Everyone wants

(28:22):
you to save. But guess what Now you have to
start taking money, have qualified accounts and pay gets what
taxes at your ordinary income rate? This is crazy. So
the proposal would require savers above this cap to withdraw
from their accounts fifty percent of the excess above the
cap each and every year, whether they need the income
or not, and pay taxes on that withdraw, in a sense,

(28:45):
ending the tax preferred status of those funds. So think
about this. You go ahead and work, you put money
away for retirement, but guess what things are changing. Taxes
are changing, brackets are changing, new taxes are enacted. What
are you going to do when this happens. Think about

(29:06):
the income you're receiving right now. Say you're receiving five
thousand dollars a month of income, and you're sitting pretty
and everything is great in retirement. But guess what things
change with the tax rates now Instead of the five
thousand dollars a month of income, now you're receiving say
thirty five hundred dollars a month of income, what do
you do? Do you go back to work, do you
take more from your retirement assets? Do you have enough

(29:28):
money from your investments to make sure that you don't
outlive your money? These are the questions that many people
are having. So what's the solution det What can people
do now to put themselves in position to take advantage
of these opportunities as opposed to falling victim to them.

Speaker 4 (29:44):
Well, two things that we offer right now.

Speaker 3 (29:46):
If you go to our website, Maggie tax dot com
on the top right, you'll see retirement tax bill. So
what Chris is just referring to, Now, let's see what
your tax bill and retirement is going to be. Plug
in the numbers, put your account value in there that
you can actually put in the tax rate, and in
thirty seconds I'll repeat that. In thirty seconds, you'll see
what your retirement tax bill is going to be. Then

(30:07):
that's when you should come in and take a time
to meet with us. Number two the seminar, the three
and one seminar that we're the only ones doing this
on a state planning, on tax planning and Social Security planning.
You should register for it because this is what we're covering,
what we've been talking about today. We have material to
give out for all of you that's going to you
can take home. You can take a look at it,

(30:27):
be a lot clearer and then make an appointment. But again,
go to Maggie Tax dot com, click on seminars number
one and register today and number two. Go to the
Retirement Tax Bill, put in your numbers and in thirty
seconds Chris will give them the retirement tax bill that
they're going to.

Speaker 4 (30:41):
Have to pay.

Speaker 2 (30:41):
That's it, so let's put together strategies now now to
take advantage of the opportunities in the future. Visit our
website Maggie Tax dot com. Schedule time to meet with us.
Eight three to three Maggie Tax. Let's put together the
Maggi Plan for you income planning, tax planning, investment planning,
social security maximization planning, a state planning, a three three
Maggie tax. That's a three three Maggie tax.

Speaker 1 (31:06):
Stop planning for Uncle Sam's retirement and start planning for
your retirement. As we return to the Maggie Tax and
Financial Hour with your host father and son, Robert and
Chris Maggie. For additional information on how you can create
a tax free retirement, visit Maggie Tax dot com. That's
ma gg I tax dot com or call eight one

(31:27):
three three two two twenty five twenty. That's eight one
three three two two twenty five twenty now your host
for the Maggie Tax and Financial Hour, father and son
from Maggie Tax Advisory and Financial Group, Robert and Chris Maggie.

Speaker 3 (31:44):
Welcome back and thanks for joining us today, and I
hope you learn a lot from today.

Speaker 4 (31:47):
We have a lot to discuss with you.

Speaker 3 (31:49):
Please go to our website Maggie Tax dot com and
register for the seminars that are coming up on tax planning,
on social security, on estate planning. Questions that you have
we can answer. Give us a call eight three three
Maggie Tax. There are operators standing by right now.

Speaker 4 (32:03):
It's up to you.

Speaker 2 (32:04):
And we call it a three and one. Don't we
call it a three and one.

Speaker 4 (32:06):
That's a good point. I forgot so three and one.

Speaker 3 (32:08):
Yeah, tax planning, a state planning, social security, and there's
no one that I know that's doing three in one.
And this is an educational event. It's about you understanding
the language. So we talk about a lot of things.
You know, your retirement tax score, what is it? You
know how it pertains to taxes because you're going to
be paying a lot in taxes somewhere. You're going to
be paying taxes somewhere. But how much are you going

(32:29):
to pay?

Speaker 4 (32:29):
We don't know. You know, how are your assets tax when?
You know? Chris.

Speaker 3 (32:32):
One thing that we always get when a client comes
in and shows us their statement on the bottom, it
says consult with a tax advisor, right So, and the
reason why we say that is because what we see
on that form is they're taking money from a taxable
account to create a tax and they don't need to
if there's an account that's already been taxed.

Speaker 2 (32:51):
Think of it this way. If you have your left hand,
that's account that's infected with taxes, and then you have
the right hand, which is tax free. So think of
it about it. Would you want to put your hard
earned assets in your left hand where it's weak and
it doesn't have really strength and that's where it's infective
with tax or would you rather put your strong, valuable
possessions in your right hand where it's strong. You know

(33:13):
you can squeeze it. You have the ability to have
tax free money. That's what we're talking about here. So
think about your retirement accounts today when you get when
you leave for the weekend, and you think about things
during the week and after today's show. It's so important
that you understand where your money is. Do you have
accounts that are infected with taxes that you're living in

(33:35):
a question mark tax environment. Who wants to live in
an environment where it's cloudy all day, right, and you
don't know if it's gonna rain. Well, that's the same thing.
You don't know what's gonna rain on your investments, and
when it does, it could be really, really hard because
they change the legislative risk where there's more taxes to pay.
I'd rather be in a sunny Florida where the clear

(33:56):
skies and there's no rain, knowing that you can put
a smile on your face, and that's the retirement that
I want. You can have that too, if your accounts
are put into position where they're safe, where you have
protection against tax risk and also investment risk, and you
can take income for the rest of your life. That's
what we're talking about today. Putting together your financial puzzle.
Make sure it's right. We all put together puzzles in

(34:18):
the past. We all know that when you're done putting
the puzzle together, it makes yourself feel really good. But
that one or two missing pieces really upsets you. So
put together the retirement puzzle for you and we can
help you the tax side of it, the income puzzle piece,
the investment puzzle piece, the estate planning puzzle piece, the
social security maximization puzzle piece. Let's put it all together

(34:40):
so you can put a smile on your face for retirement.
So schedule time to meet with us. Eight three to three,
Maggie tax. That's eight three to three, Maggie Tax.

Speaker 4 (34:48):
I have a question for you.

Speaker 3 (34:50):
You've done puzzles before, and every time, like you and
your brother did a puzzle and we got to the end,
that was a piece missing. How hard did we search
for that piece that's missing? We went absolutely positively.

Speaker 4 (35:02):
What nuts.

Speaker 3 (35:04):
We looked under the table, we looked in the box,
we looked all over, because that puzzle is not complete
without that final piece exactly, and you mentioned it. What's
the final piece? Is it taxes? Is it legislative risk,
is it sol security? Is it market risk? What is
it is it a state planning risk?

Speaker 4 (35:21):
What's the missing piece?

Speaker 2 (35:22):
Chris, great point, and that's why many people out there.
The tax piece is the missing piece. The investment piece
is the missing piece. The guaranteed income streams are missing
is a missing piece. The estate planning side is the
missing piece. So what are you doing to put it together?
And you might have multiple missing pieces for your financial retirement,
and that's what's holding you back. That's what gives you

(35:45):
the uncertainty. That's what doesn't give you the confidence. That's
what doesn't give you the clarity. You want the clarity,
the confidence going into retirement. Why because you have stuff
to fall back on. No one wants to go back
to work in retirement. And we've seen it and you
don't have to. It doesn't have to be if you
put everything together. So pick up the phone, schedule time
to meet with us. Let's put together your financial pieces.

(36:06):
Let's put that puzzle together and go ahead, and let's
glue it at the end so it makes sure that
it is protected for yourself. Eight three to three Maggie tax.
Let's do this for you eight three to three Maggi tax.

Speaker 3 (36:16):
You know we call it the Maggie plan. It's simple
and easy to understand, and it should be your plan.
It should be the Smith plan, the Jones plan, whatever.
And that's the point we're trying to make because if
you don't have a plan, the government has a plan
for you, and that's not the plan that you want
because it's going to be taxed. You don't even know
if the assets are going to be passed on to
your beneficiaries. And it goes through probate and then it

(36:37):
goes through that long process and then many of you
listening today right now will probably shaking your head saying,
you know he's right. Well, now is the time to
do something about it. Come in and meet with us
and go to my seminar. Come to the seminar and
look at the estate planning and the taxes and the
social security and get a better understanding of what you can.

Speaker 4 (36:55):
Do, and you do it. You don't have to be
told what to do.

Speaker 3 (36:58):
I know many times you when you're told what to do,
you don't like it. Don't tell me what to do.
Let me understand before I do anything, right. I mean,
I used to yell at you guys all the time,
but used to walk away from me and say dad, chill.

Speaker 4 (37:10):
You know you don't get it right.

Speaker 2 (37:11):
But once you understand when you get older, why you're
saying what you're saying, it makes total sense. And that's
where we're out today. Right, when's the last class you
had on your retirement and how to put it out together?
To be honest with you, there's no classes out there.
They don't teach this stuff in high school. They don't
teach this stuff with us. Yes, class, you're right, but
most people they work all day, you know, the college,

(37:33):
they don't teach this stuff. Stuff should be taught in
elementary and middle school and high school. Right. It just
makes us all stronger. But at the end of the day,
it's not so put into this environment where you need
to control your retirement. We're in a yoo economy. You're
on your own, but you don't have to be if
you have the right resources. And that's what we do
when you're coming to meet with us. Let's get together,

(37:54):
Let's have a conversation. That's why we call it the
Maggie Plan. It's tax planning piece, it's the income planning piece.
Let's put together play checks, playchecks and paychecks. My gosh,
think about how many paychecks. Do you want in playchecks
coming in the front door every month for the rest
of your life. That's a great income plan. What about
your investment plan? You know, make sure that you have
investments with different risk tolerances and maximizing it with the

(38:20):
potential for the market gains, but also the market losses.
Make sure you protect those. What about your tax risk?
Make sure that you're in control of the future legislation.
So pick up the phone. Schedule time to meet with us.
We thank you so much for listening today A three
to three Maggie Tax Schedule time to meet with us.
We look forward to meeting with you A three three
Magie Tax.

Speaker 1 (38:41):
You've been listening to the Maggie Tax and Financial Hour
discussing tax planning investment strategies, presented by Robert and Chris
Maggie from Maggie Tax Advisory and Financial Services with offices
in Hillsboro and Panela's County. Visit Maggie Tax dot com
or call eight one three three two two twenty five
twenty that's eight one three three two two twenty five

(39:03):
twenty and tune in next Saturday at five for the
Maggie Tax and Financial Hour.