What do your taxes actually look like right now and what might they look like in retirement?

In this episode, Michael CFP®, EA walks through a listener question from a couple earning $250,000 who wanted to understand their tax picture today, if their 401k contributions are actually helping them much, and what retirement might look like if they plan to spend $100,000/year.

This is a step by step walkthrough of how the tax system works for high earners approaching retirement and why the gap between your working years and retirement years may be one of the most important planning windows you'll ever have.

Topics include:

💭 How pre-tax 401k contributions may be a useful strategy instead of using Roth for this couple.

💭 Why your taxes in retirement could drop dramatically from your working years

💭 What the new senior deduction is and why income level determines if you qualify for it

💭 How Medicare surcharges (IRMAA) can quietly hit you two years after the income

💭 Why Roth conversions in early retirement may help your long term taxes more than you realize

💭 How RMDs decades from now could push you into higher brackets than you're in today

🎙️ Common Curiosities: Retirement explores often overlooked mechanics of money aimed at helping you make more thoughtful financial decisions.

Chapters:

00:00 Tax Example of $250k Working to $100k Retirement

01:11 $250k Base Example

03:03 Pre-Tax 401k Contribution Example

05:40 Medicare Surcharge Without Their Deductions?

06:39 Retiring on $100k Example

08:24 More Deductions During Working Years for This Couple?

10:18 Long-term Tax Planning and RMD Considerations

10:41 Utilizing Your Final Working Years to Your Advantage

12:40 Withdrawal Strategy for Retirement

13:27 Youtube Disc. TN & Words.mp4

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.