Have you been wanting to know a bit more about Biden’s tax plan without all the political spin? Me too! That’s why I dug deep to find the best information that I could share with you all. I promise, no politics here; just relevant information to help you best prepare for an amazing retirement.
In addition to learning how Biden’s tax plan could affect your retirement, I’ll answer a couple of listener questions. You’ll hear questions about TSP’s and Roth IRA conversions.Have you been wanting to know a bit more about Biden’s tax plan without all the political spin? Click To Tweet
Outline of This Episode
- [2:15] Biden’s first proposal is to repeal the tax cuts
- [6:41] Biden’s proposal has some tax incentives as well
- [8:47] Takeaways from these proposals
- [11:02] The TSP in retirement
- [14:11] How to structure your Roth IRA conversions
What’s the buzz about Biden’s tax proposal?
There has been a lot of buzz about Biden’s tax plans in the news, but it can be challenging to find what those plans are without all of the political mumbo jumbo thrown in. I had to do some research, but I used the least politicized source I could find, TaxFoundation.org. Joe Biden has planned to raise taxes in several areas for certain groups of people, however, he has proposed a variety of tax incentives as well. Listen in to find out what Joe Biden’s tax proposal entails and how it could affect you.Your retirement is more important than what is going on in Washington. Find out how to protect your retirement no matter who sits in the Oval Office. Click To Tweet
How could Biden’s tax plan affect your retirement?
At the end of the day, all you want to know is how the proposed tax changes could affect you and your retirement. What I want you all to understand is how important it is to build a flexible retirement strategy. You don’t ever want to jump all in or all out of the stock market. The middle ground will save your retirement in times of uncertainty.
Your retirement is more important than what is going on in Washington. If you have a portfolio consisting of half stocks and half bonds then you can even live off your bonds for an entire presidential term.
Remember, the stock market doesn’t care who is president. The top companies in the world will continue to succeed regardless of who sits in the Oval Office.
Taxes will always increase over time
Another key takeaway that I want you all to remember is to pay the devil you know. Both portfolio values and taxes will likely increase over time. So, if you are newly retired with some tax flexibility it makes sense to pay more taxes now to prevent yourself from paying a lot more later. Remember, pay taxes like a pessimist and invest like an optimist.Pay taxes like a pessimist--invest like an optimist. Click To Tweet
What will you learn from our listener questions?
Our listener questions today involve are about Thrift Savings Plans (TSP) and how to structure Roth IRA conversions. I’m not an expert in TSP’s, but if you are a government employee you’ll want to listen in to discover an excellent resource to help you plan your federal retirement. Stick around till the end of the episode to learn how to thread the needle and avoid a hefty tax burden with your RMD’s.
Resources & People Mentioned
- Biden’s tax proposal from TaxFoundation.org
- Taxes in Retirement Facebook group
- Micah Shilanski, federal benefits and TSP expert
Connect with Benjamin Brandt
- Get the Retire-Ready Toolkit:https://retirementstartstodayradio.com/
- Follow Ben on Twitter:https://twitter.com/retiremeasap
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