The Setup:

Now we move to part three of a five-part series about financial myths and this episode focuses on taxes. Once we stop working, it’s easy to assume that our taxes will drop because we’ll move into a lower tax bracket. Well, that’s not the case. Find out why your taxes might increase and what strategies you can use to offset that.

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Click the timestamps below to skip to a specific topic in the episode.

The Combination:

No one enjoys talking about taxes but knowing what to expect can help you position yourself in the most advantageous way.

That’s what we’ll do today on the latest episode of Unlocking Your Financial Future. This is part three of a five-part series that will bust the biggest financial myths that exist and today we address the idea that we’ll be in a lower tax bracket once we retire.

It seems to make a lot of sense because we likely won’t be earning what we did while working but don’t expect it. There are some reasons why taxes could go up and Ben Schrock will explain those scenarios.

But we won’t leave you with all bad news. We’ll also share some strategies B.A. Schrock Financial Group uses to help offset these taxes and take advantage of the low rates we currently enjoy.

Before the main discussion gets started, we’ll dive into the mailbag and take a listener question on understanding your portfolio and how it should be performing.

We’ve laid out the main topics below. Click the timestamps to jump around in the episode.

Key Points:

1:10 – What’s in store on today’s show and introducing part 3 of the series.

2:12 – Mailbag question: My retirement accounts have done well recently, but I don’t really know what it should be doing. How do I know if my money is doing what I need to do?

3:30 – What’s a good average rate of return to shoot for in a strong market?

4:20 – Returning to our series on ‘Busting the Biggest Financial Myths’

4:51 – Myth: You’ll probably be in a lower tax bracket once you retire.

5:42 – We can’t assume taxes are going to get any lower.

7:07 – Strategies you can use to take advantage of lower tax rates now.

8:44 – How Social Security impacts your taxes.

9:57 – How we help clients that want to see how taxes impact retirement planning.

5:50 – How does someone know what level of income they’ll need to have to retire?

6:27 – Ask yourself this question.

6:57 – What are the primary income sources for a retiree?

7:42 – You can find your Social Security estimate anytime.

8:45 – What options do you have for adding income-generating investments in retirement?

9:45 – Are clients typically prepared when they come in?

9:14 – Life insurance can be a way to take income in retirement.


Related Content:

Do You Need Life Insurance After Retiring – Busting Financial Myths, Part 1

Will You Need Less Income When You Retire – Busting Financial Myths, Part 2