Podcasts Business Retirement Starts Today How the Biden Tax Plan Could Affect Your Retirement, Ep # 158

How the Biden Tax Plan Could Affect Your Retirement, Ep # 158

Published: Sept. 21, 2020, 8 a.m.

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\\xa0Have you been wanting to know a bit more about Biden\\u2019s tax plan without all the political spin? Me too! That\\u2019s 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.\\xa0

In addition to learning how Biden\\u2019s tax plan could affect your retirement, I\\u2019ll answer a couple of listener questions. You\\u2019ll hear questions about TSP\\u2019s and Roth IRA conversions.\\xa0

Outline of This Episode

  • [2:15] Biden\\u2019s first proposal is to repeal the tax cuts
  • [6:41] Biden\\u2019s 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\\u2019s the buzz about Biden\\u2019s tax proposal?

There has been a lot of buzz about Biden\\u2019s 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\\u2019s tax proposal entails and how it could affect you.

How could Biden\\u2019s 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\\u2019t 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.\\xa0

Remember, the stock market doesn\\u2019t care who is president. The top companies in the world will continue to succeed regardless of who sits in the Oval Office.\\xa0

Taxes will always increase over time\\xa0

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.

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\\u2019m not an expert in TSP\\u2019s, but if you are a government employee you\\u2019ll 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\\u2019s.

Resources & People Mentioned

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