How to Reduce Retirement Taxes By 300% or More

In this episode, we dive even further into the BLS and other research on retirement income.

The Pension Rights Center says the average Social Security benefit per beneficiary is $1,360. While the average asset distribution was $1,542 per household.

They claim less than 30% of retired households have pensions and less than 7% have VA benefits. And the average earned income in retirement is $25,000.

The BLS provides this table:

Age of Household Median Income Mean Income
Households Aged 55-64 $62,802 $89,986
Households Aged 65-74: $47,432 $68,905
Households Aged 75 and Older: $30,635 $45,989

Notice the difference between median and mean. IT’s HUGE! We want to look at the median when we can as opposed to the mean, i.e., average

In the video, we’re going to dissect the income sources AND, as always, the tax consequence of having income from various sources.

Again, using the Tax Foundation handy-dandy calculator, you’ll see very quickly that depending on how where your income is from has a drastic affect on the tax you pay.

So, for those who do not want to watch the video, the crib note recommendation: Delay Taking Social Security Until You Are 70!

https://www.newretirement.com/retirem…

https://www.bls.gov/opub/btn/volume-5…

https://taxfoundation.org/2018-tax-re…

The Tax Foundation has a most wonderful calculator you can use to gauge your tax, now and in the future.

Now this calculator was set up to show you the benefits of the Tax Cut and Jobs Act (TCJA). And there are many, many benefits to that new law.

However, if you dive a bit deeper you can see how different sources of income can really hammer you tax-wise in retirement.

Watch as I walk you step by step to see how much more you’ll pay in taxes if you take Social Security early and have large Required Minimum Distributions.

You won’t want to miss this.

In fact, I suggest you start NOW planning for your future tax burden. The earlier you start planning the less painful it will be in the future.

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