Tax Tips for Retirees

ABOUT THIS EPISODE

Whether you are entering or already in retirement, taxes don't go away. You still have to pay taxes on your retirement income. What is the best way to plan for these taxes? How can you plan today to pay less tax in the future? These questions and many more are answered by financial expert, John Browning.  

Welcome to the build your life podcastwith John Browning. Build your life as a relaxed and unedited conversation with financialexpert in number one Amazon best selling author, John Browning Jones the founder of GuardianRock Wealth and serves clients across the United States. John's the author ofthe book build a life, not a portfolio, a guide to your financialfuture based on your personal values, which you can purchase on Amazon, orstay around to the end of today's show and I'll tell you how to geta free copy mailed right to your door. I'm Michael The lawn, your hostfor the next few minutes as we chat with financial expert and business ownerJohn Browning. Where I love John. Hope Your Day is going well today, sir. It is going fantastic. I'M gonna glad. I'm glad here. That's a good word, fantastic, and you're going to have some fantasticadvice for some people today, because we're...

...talking about tax tips for retirees andthat's a there. There's a can of worms there, I think. Solet's talk about that. Is Is this. Are you talking about people who areplanning for retirement or people who are in retirement? Or both. Ithink there's there's a little bit of both here and it's important in both stagesthat you're in. Okay, what so what are some tips as ours?Let's just slice it as I'm planning for retirement. What are some tax tips? And then let's talk about when I'm in retirement. What are some taxtips? Can we do it that simply? Yeah, I think it kind ofmingles in, but yeah, there's there's kind of there's a delineation thereas well. Okay, I think that people tend to forget that when theyretire, in many cases, not all, but in many cases, they stillhave to pay taxes on that retirement income. So they paid into theone K or that IRA or whatever it...

...is for d whatever count is.They paid into that for years and now it's time to enjoy the rewards ofall that savings and retire and do what you love to do and less,of course, you're working every day and what you look to do, inwhich case you never worked a day in your wife but maybe you're just transitioninginto doing a little bit less of that. But those funds are taxable and soyou may have a million dollars saved up and you want to withdraw xnumber dollars per month. Well, you have to withdraw that x number ofdollars per month and in addition to that, whatever the taxes are on that.And it's much like when my kids first started working. They said,oh great, I'm going to make, you know, fifteen bucks a nowor ten bucks an hour, and they get their first paycheck and it's justlike well, what somebody's felling from me?...

You know, I got call it. Realize that they had to pay taxes on that. Same thing happenswhen you retire. A lot of people realize they have to pay taxes onthe proceeds of a lot of that. And you know, once you're inretirement, to the lineate that you know at you you can say you're sayyou did really well and you didn't want to withdraw anything from your retirement accounts, and you didn't do that. Well, at age seventy two, the governmentsays you can't do that anymore. You have to take what's called ard or required a minimum distribution, and from that I have to pay sometaxes. Yeah, so what do you do? And one of the wayswe talked about this in a a a earlier episode, is that if youset things up in a Roth IRA or maybe you have a traditional IRA.Maybe you're a little bit older and before the Rath IRA was invented you hada traditional IRA or a one k.

There is a method where you canconvert, and typically you want to do this on this little slowly all yourtime. You can convert those assets into rath assets, but that means youget the can't just not pay taxes as you would thraw it from that traditionalIRA and put it into the Roth IRA. You have to pay that tax.Yeah, at whatever act bracket is. Then now, as you get older, a lot times you can work it's so that you can control yourincome year to year just a little bit, and we have some tips and tricksfor for doing that. And sometimes it requires that you have a prettygood relationship with your employer, or maybe your employers. You you can getto the point where you qualify for that Roth and in that year you canthen convert things over to the Roth, start a rath or whatever you wwant to do. That's one tip.

...is to be aware of the differenttypes of accounts and how you can use them in what the timing is onthat but another really interesting one that requires a little bit more effort, butit certainly doesn't require the effort that a lot of people fear. We've talkedabout how we make our fears bigger than they really actually are. And soa little like and you could start up, say, a charitable remainder trust,and then you and say, your spouse or whoever else you wanted tobe on the board for that charitable remainder trust. Now it does. Itdoes need to fund to charity. Right, you have to have have to havethat. But that's yet another tip, especially for wealthier investors, how theymight want to control or minimize their their attacks spending. Okay, withthe tidy of withdrawing and which accounts you...

...draw from when makes a big differencewhen you're in retirement. So if you have a roth account, regular account, which one do you draw from and how much from each one do youdraw from what time? And usually that discussion should it should really start inJanuary, but typically what happens is they wait until December and they have thatcushion and and then it can be difficult to get done all at once andin one month period. So have that discussion earlier. In the year andkind of plan that out. It's all just just like we talked about developinga road map to build your life, not just your portfolio. There's alsothe road meant just changes a bit, as do you are actually in retirement, right. So how, when? From where do you draw down thosethings for your for your life that you've built for yourself? Yeah, andthat and that's good and it just opened...

...up, you know, the therealization once again why people need to work with somebody like you, because youjust you talk about this like it's just super simple, and it is foryou because you do it all day, every day. I'm saying they're goingto Oh my goodness, there are a lot of roads, there are alot of dead ends, are a lot of speed bumps, a few potholesand a whole maybe some accidents that are going to happen if I'm trying torun this right. The thing is, John and John is like a constructioncare he paves those roads for you, he plans them out, he plotsthem out, he's got the blueprint and he has that high level perspective togo. Well, here's, here's where we need to be thinking about andeven I love the starting in January. You, when you work with clients, I'm sure you say, Hey, it's time to talk about this,let's have that discussion, let's schedule time to talk about this, and it'slike, why do I need to talk about that? It's only March.Well, because the decision to make today can effect. You're in right inall that other that's the beauty of having somebody like you on the team,John Is. You have all those questions...

...in really, I mean I'm makingthe decisions, but your guiding the conversations many times and the direction, becauseI'm the other that's what I could do. It's just I give you options.I give everybody options. Yeah, I often say when I'm working withsame an attorney or or tax professional, I don't really like working with legalguy or a tax guy that just says no, he can't do that.Right, this is what I can do. I like working with them. Itell him what I want to do and if it just just completely offthe wall, which sometimes it is, they say well, here's three optionsright now. One of them may be very obvious right now what we shoulddo, but they let me make that decision and and that's the way Ilike to work with with our clients, is that way, because there's,I mean both. You know that just scratch the service right. I meanthere's when do you take those security what...

...do you do with this whole thingcalled Medicare? We had a it's been a while ago, but we hadBrian Macarthur on as a guest speaker on the podcast and that's kind of whathe does. That's that's like ninety percent of what he does is help peoplewalk through the process of Medicare, because that is so complicated. It's franklybeyond my scope of expertise. So I help people by quarterbacking that relationship withBrian and he helps them. So you know, there's part be there's themedication, there's supplements, there's all sorts of things that go into that andif you make a wrong decision as you start, it can affect later yearsand your Medicaid Fun journey that you have. So there's all sorts of steps.The number one tip is is wing at work with somebody who not justknows what is available and what the options...

...are, but also work with somebodywho can admit when they don't know things like like Medicare and but has agreat contact and a trusted contact that you can quarterback and put them in touchwith that will do a great job for them on that portion of their life. That's that's a huge tip right there done, because if you meet anybodywho says I can do it all, probably run yes when you when youmeet somebody like John, he says this is my specialty, but I havea team of people around me and I know other people who can, whocan pour into specifics. That's great because John Becomes the quarterback per se ofthe team and you're bringing all the players to the table to say here's whatwe need to do, and that's huge. That's time saving, that's peace ofmind, that's comfort, that's way cool. So that is probably thebiggest tip for retireas is to work with John Browning at Guardian rock wealth andlet him quarterback everything that you're doing so...

...that you're making the ultimate decision,but he's bringing things to the table and helping you get to where you wantto go by helping you build that life, not just a portfolio. And andunderstand how I don't understand enters and taxes, because that's a bit thatthey just don't go away until you're in the coffin and you need even there. Even there there's a state taxes. If you didn't didn't plan, well, there you go. So tax. Wow, there you go. There'sall holes off Akl yes, but that, yeah, we need. We needto do another episode of around the state taxes and we're going to dowhen it coming up, around around setting up a trust and things, andmaybe we can get into that, because it's just all important and we needto be planning for it and educating our families about it, because it isa big deal and and a lot of surprises have up and when people don'tplan properly. And if you reach out to John and Guardian Rock Wellscom hecan help you begin that entire process of planning properly so that you'll build alife that you're enjoying today, build a...

...portfolio. They'll sustaining you for lifeand you'll mitigate taxes and take care of them properly and pass some money ontoyour airs or gifts or whatever you want to do, because it's your liferight right. John Browning, another terrific episode. Thank you so much.I look forward to talking with you again soon. Ye, all right,we'll see you next time. Money really is a big part of our lives, and John Browning can help you and your family learn how to keep moneyin the proper perspective. It's important, but it's only a tool that canhelp you build the life that you want. If you like, John Emilie afree copy of his book build a life, not a portfolio. Goto John's website, Guardian rockwealthcom, and click the contact to US link andsend your request. John Will Mell a copy of his book right to yourdoor absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast...

...so each new episode will be sentto you automatically when it's released. Have a terrific day.

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