Webinar - Taxes January 2023

Speaker 1 (00:00):

Hello everyone and welcome to Boss Retirement Solutions, uh, webinar today, the three tax planning strategies that could save you a fortune in retirement. We can see dozens of people logging on right now, so we're gonna give, um, everybody just a moment. Uh, wanna thank us for, uh, joining us, Tyson, we're gonna have a great webinar today, right? Oh, yeah. We are excited to share this information today. So, um, just hang tight here. We're gonna get started in just a moment. And, uh, while we're doing that, um, you know, as we look forward to sharing this information, we think it's important, obviously, um, just to cover a couple different things. We're gonna cover some tax topics today, um, and we are going to, uh, be talking about, you know, some, some case studies. And it's important to remember that no two cases are alike and, uh, everybody, uh, should seek their own tax or legal advice.

Speaker 1 (00:57):

Of course, the information here is not specifically tailored just to you. Um, but, uh, Tyson, this should be a good show today and, uh, let's get started. Um, my name is Ryan Thacker and, uh, long here with my brother Tyson. We are the retirement brothers from, uh, boss Retirement Solutions. We grew up here right in Salt Lake City, and, uh, we love Utah. It's, uh, just a great place to be. And, uh, we raise our families here. Both of us have four kids, and, um, we just love Utah. We love everything it represents. We love, uh, living here in this great state. Uh, we grew up in Cottonwood Heights. Our dad was a barber, uh, had a barbershop in the Cottonwood Mall, and so this is, uh, this is where we call home and, uh, we love it and we love helping, uh, families, uh, the very most.

Speaker 1 (01:43):

And, uh, so Tyson, with that, uh, let's get started. Where, where people may be have seen us before. Well, you mentioned, uh, that we love helping people, and one of the ways that we love helping people is we like to get in front of as big of an audience as we can. So we've been fortunate to have been featured in some of the most respected media outlets. We are. We're on ABC four all the time. Uh, we are on KSL TV as well, uh, Fox Business. Uh, you see all of the different places where we've been at one time or another. We also have a weekly radio show on, uh, K N R S, as well as K S L, uh, at different times, uh, on, uh, Wednesday evening, Friday evening, as well as Saturday, several times on, uh, both of those stations. So we wanna just get our message out in as many ways as possible.

Speaker 1 (02:33):

Well, and Tyson, we are, uh, we're proud of this, uh, last two years, 2019 and 2020. We've been named, uh, winner of best of state here in Utah for retirement planning. And, uh, we're just, uh, super excited, but most of all, forget all the TV appearances and the awards. What we love most is helping families, uh, just like you, uh, retire with confidence and retire successfully. Now, we've heard from past webinars that people love that we put this up front in case you already know that you wanna schedule, uh, that you understand who we are and what we offer, and you're ready to take action. We recommend, if you're ready to do that, to call and schedule your free retirement tax analysis right now. You can see the number there, 8 0 1 8 9 6 96 20 20 96, 22. Or simply click on the button on your screen now, today, the, it's, it's gonna be offered just a few slots today.

Speaker 1 (03:28):

These slots do fill up quickly. Uh, so if you're ready to go, we wanna make sure that you get your slot. So, Tyson, let's, uh, let's jump into this 2020. I think it's, we can all agree it's a year that we will never forget. And this quote right here was, uh, from Forbes. That sums a lot, sums up a lot of what we want to talk about today. Says, we're not all gonna get Covid 19, but we are all gonna pay for it. Oh, man, <laugh>, that's true. Tyson, this is the bottom line. This is why we're doing this, uh, webinar today. So many people are asking us, they're saying, what does this mean? Um, with all of the stimulus that's been going on, um, is it likely that we're gonna see massive tax increases just around the corner? And, uh, really it's been the perfect storm.

Speaker 1 (04:16):

Um, you and I both had Covid 19. We have we're grateful that we're, uh, that we've recovered and that we're healthy. Uh, for those of you who have, may have had a family member, or you personally had Covid 19, or even had someone pass away, um, our hearts definitely go out to you, um, at this time. And, you know, you think about this, this is, this is a big deal. Um, this is something that's never happened before in our country like this. And I think Forbes hit it right on the nail. How does that relate to your retirement? Well, we're all gonna be paying for it in taxes. So, Ryan, when you talk about taxes, uh, what this really means is a lot of governments built on the federal level and on the state level, have had lower tax revenue and higher expenses at the same time.

Speaker 1 (04:59):

You think about the trillions of dollars that have gone out into the economy as far as help. And not only did we get our, our economy shut down here locally because of the pandemic, uh, but we also have the earthquake. Yes. And so a lot of, uh, businesses have closed their doors. I, we run, we, uh, go past a restaurant after restaurant that has closed their doors. And so again, the tax revenues for the state and the federal government have dropped like a rock, and at the same time, government spent trillions. So you've got this lethal combination of higher expenses and lower revenues, and unfortunately, our problem gets even bigger. Well, speaking of big Tyson <laugh>, this is a really big number. This is huge <laugh>. Um, we are about ready to hit 28 trillion, that's 28 trillion with a t um, record debt of the United States government.

Speaker 1 (05:54):

And it's not gonna get any better. Right now, Biden is talking about a 1.9 trillion stimulus package that puts us, if that's passed, that'll put us right at about 30 trillion. And, uh, I think we, I think we know this Tyson, um, money doesn't grow on trees. It does the money. We didn't have one in our backyard in Cottonwood Heights. I know that. Um, I've seen peach trees, I've seen apple trees. I've never seen a money tree around. I have not seen a money tree. And so it's gonna come down to this massive tax increases and these massive tax increases. I think here's where a lot of people are confused. Massive tax increases are not just for the wealthy, but this could hit all hardworking Americans. And, uh, here's what no one's talking about is if you plan on retiring in the next five years, these are the taxes that could decimate your ira, your 401k, your other tax deferred retirement accounts.

Speaker 1 (06:52):

And really, uh, the bottom line is, we see this for people who don't have a plan, is, uh, this could leave you with just a fraction of the retirement savings that you're planning on Tyson. Absolutely. And, and so where does it hit home the most? Ryan, you just mentioned it, 401ks, IRAs, all those different types of retirement accounts. And this quote is from Ed Slot. If you don't know who Ed Slot is, um, wall Street Journal calls him the best source for IRA advice. And, you know, we do a lot of, uh, value ads for our clients, bring in people like Ed Slot. Sometimes we have people like that on a radio show. And here's what he said. The accounts that are most in trouble are those retirement accounts, tax deferred accounts, 401ks 4 0 3 [inaudible] IRAs, they are on, listen to this, the chopping block. Ouch.

Speaker 1 (07:42):

Why? Because the money has not yet been taxed. It's like sit is sitting duck for Congress to, to make this happen. And, and we don't want that to happen to you. Well, and you know, if you, if you don't know Ed Slot, um, this is, this is an area that you really need to become familiar with because I think you're listening to this. And how does this apply to you? You probably have most of your retirement savings in an IRA of 401k or 4 0 3 [inaudible]. And, um, you know, we need to wake up to the fact that, um, there's a silver lining to this, and that is that taxes are lower now than they've been in over 40 years. And if we just go back and if we look over what's available right now, I mean, go back to, um, you look at where taxes were, um, in the sixties and seventies.

Speaker 1 (08:31):

You look at where taxes are in the eighties, many of you remember, uh, Ronald Reagan had a big tax, uh, decrease. And then, and then right after Ronald Reagan, do you remember these words? Uh, read my list, my lips, no more taxes. And what happened? Tyson taxes went up. That's why George Bush didn't get reelected. George Bush, Bush Senior is because everybody read his lips and didn't like it. And then love President Trump, hate President Trump. It doesn't matter. The 2017, uh, jobs act cut taxes to be lower than, uh, where they were in over 40 years. And now President Biden has already said, we're raising taxes. Yeah. It's only a matter of time. And there was some tax changes that we're gonna change in 2025. It looks like it's gonna be a much shorter Yes. Time horizon than that. Yes. So really what this boils down to that we want to talk about today is three strategies that could help you save a fortune in taxes when you retire.

Speaker 1 (09:25):

The first one is understanding the difference between tax preparation versus tax planning. This is a big one, Ryan, that, that we're gonna talk more about. The second is having a strategy to withdraw money from your IRA in 401k. Let me tell you this, if you don't have a strategy of how you're gonna withdraw this money, you're gonna be paying way too much in taxes. And so many people say, you know, look, I can't do anything about this. It is what it is no matter who the president is, um, who whatever Congress is, whatever tax I have to pay, it just is what it is. We're here to tell you that you have more control than you think. And the third one is to explore the idea of converting your traditional IRA or 401K into a Roth or into some alternatives, like a 77 0 2 in the IRS tax code.

Speaker 1 (10:10):

We're gonna dump, jump more into that as well as, as we, uh, continue on with our webinar. So we're gonna talk about each of one of these in more detail. Well, let's talk about the first one here, understanding the difference between tax preparation and tax planning. And, and this is a big deal, and let us, let us explain the difference. Um, most, most of you and most Americans simply prepare and file their taxes every year on April 15th with their accountant or cpa. Now, you may be able to find a handful of deductions that could save you a few bucks, but at this point, what's done is done. And when you file your tax returns, you're just reporting history of what happened in the, in the last year. But if you really wanna save money in taxes in retirement, you need to look forwards, not backwards.

Speaker 1 (10:57):

This is called tax planning. Now, what we look at, Tyson, we call this looking out the windshield instead of looking in the rear view mirror. Absolutely. And, uh, so many people are trying to do the, their retirement planning for taxes by looking in their rear view mirrors last year. Most CPAs, most tax attorneys are focused on what happened in the past. We're talking about significant savings that could be tens of thousands, if not hundreds of thousands of dollars in taxes when you retire. And that's with tax planning. So we've talked about tax planning. Um, this is from Investi, uh, PIA, that says, tax planning should be an essential part of an individual investor's financial plan. And it goes on to say that tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest tax possible.

Speaker 1 (11:47):

Now, here's the big disconnect that I think most people have, Ryan is, is that, um, most people, as, as you mentioned, they just report history and you want to get more than those few deductions. And, um, you think to yourself, well, I'm just gonna keep allocating my investments. I'm gonna keep, um, putting my money into a 401K or an ira. But it's important to work with a qualified advisor that can help you through this because there's a lot of value that's added to this. As we do this, we can help you take advantage of these strategies. Now, we're not a cpa. We have one on on staff. We have somebody who has a master's in tax on staff. But we really love to work hand in glove with a cpa with your tax advisor that's going to help us to help them to take next steps for you so that you can minimize taxes not only now, but all through retirement.

Speaker 1 (12:40):

Well, and the myth has always been that I think most people are still operating on the people that have not worked with us before. What we find is they're still under this deferred, deferred deferred taxes. And they're told by, uh, their professional advice right now who doesn't understand. There's many professionals who don't understand this. We've had clients who are in this field who come into us and say, who are CPAs? And they say, I can't believe that I didn't understand this before. And then they wake up when they see what we're gonna show here in a minute is when you look forward the vision and the clarity that you can receive, they were under the, the myth of defer taxes, which was how they did their 401k or IRA, make the contributions a hundred percent tax free, let everything grow tax deferred. And the myth was, you're gonna be in a lower tax bracket when you retire.

Speaker 1 (13:23):

Well, folks, when you add in taxes on social security, taxes, on your investment income, taxes on your pension, taxes on your withdrawals from your IRA and 401K required minimum distributions, folks, these things add up to you're not in a lower tax bracket <laugh> when you retire for most people. So this comes down to, uh, strategy number two is you need to look forward and have a withdrawal strategy for your IRA and 401K and other tax deferred accounts. Uh, because this is very important. If you, if if you don't have a plan, then you're most likely planning to fail in this area, and you're gonna needlessly pay tens of thousands, if not hundreds of thousands of dollars, uh, the in, in taxes. So, Tyson, we, we really wanna make this pay attention to this next thing. Tyson, this, this is big. Uh, what is important to remember in your 401k or ira?

Speaker 1 (14:13):

Well, Kiplinger's said it really well. You have a silent partner in your 401k, and his name is Uncle Sam <laugh>. Now, here's what we mean by that. It's easy to think about your IRA or your 401k or other type of retirement accounts as being all of your money. In fact, the reality is, is when we sit and talk to people, when they come into our office around a zoom call, everybody knows down to the penny mm-hmm. <affirmative> how much money they have sitting in that four Oh [inaudible] the ira, right? Yes. But you have to remember that you pay taxes when you withdraw the money from your account. And most people have no idea what that number looks like. They know how much they have saved, they have no idea how much they're gonna be paying taxes because the government makes it so easy to contribute that money to your tax deferred retirement account.

Speaker 1 (15:00):

But retiring, or yeah, retiring and withdrawing that money, well, it's literally riddled with trap doors, Ryan. And that's why it's critical to have a strategy to withdraw that money from your ira, your 401k, because without a carefully coordinated and customized plan to you, you're gonna needlessly trigger higher taxes, unnecessary penalties and fees, and even things like doubling your Medicare premiums, we can help you so that that doesn't happen. So let's put some numbers to this because, um, I, we think that numbers always help. Now, um, we're gonna use a, a case study here. We'll call 'em Bob and Susan. And remember, every scenario is different. And so this is where we're gonna invite you to have a customized look at this for yourself. But, uh, Bob and Susan, they've done a great job saving in their retirement accounts and their 401k. And then one day they learned that they were facing an enormous tax bill when they're gonna withdraw this money from their retirement accounts.

Speaker 1 (15:55):

And so, um, let's take a look at this. I mean, they, like we talked about here before, they've saved just over a million dollars. They've done a great job saving in their ir, they've felt pretty good about that. They're just kind of going along thinking, oh, we got a lot of money saved in retirement, um, until they find out that they're gonna have this tax bill and we'll, we'll identify this tax bill here in a second. But they were planning to defer, um, until they got to age 72, they didn't need to take any money. Their social security and their pension was covering all their lifestyle needs. And why 72, Ryan, just to clarify that is the new age for required minimum distributions. And so they had been told by, um, you know, their current, uh, advice from their professionals to just continue to defer.

Speaker 1 (16:36):

If you don't need the money, let that grow. Let it let the investments grow, and their plan was to leave it to the kids. Well, then they have this opportunity to look at the forward-looking tax analysis. And Tyson, let's break this down. So when you come in and see us, we customize this for you. Uh, Bob and Susan have their own situation. We're gonna show how it works for you. But let's see how this worked for Bob and Susan. So they had the majority of their money in qualified accounts like a 401k, like an ira, and look at these numbers. So when they get to age 72, most advisors, again are gonna say, kick the can down the road. Don't worry about, uh, paying taxes until you're forced to. Well, when you're forced to, it leaves you with less options. We want to give you as many options and put you in control of your own personal economy.

Speaker 1 (17:25):

So in this example, they paid $443,154 in taxes on their required minimum distribution. So that wasn't money that they pulled out as RMDs, that was taxes. Now then they had to put the money somewhere. They put that money into a brokerage account, which you've got to pay, uh, the gains every year. Let's say that this is 5%. That's how we calculated this. They paid an additional $209,332 in additional taxes on money that they made in their brokerage account. And then Ryan, you, you talked about how Bob and Susan wanted to, to just give the rest of their kids. There's so many people, in fact, I just talked to a couple last night who said, my mom is about ready to pass. She has no idea how much in taxes she's gonna pay. This is what this boils down to right here in this example, because you still have it in a 401K or an ira, it doesn't mean that they stop having to pay taxes when it's passed on to the next generation.

Speaker 1 (18:24):

They still have to pay required minimum distributions. And instead of doing it over your lifetime, it's 10 years that you have to pull that money out. So in this case, $287,634. So total taxes paid on their retirement money of a million dollars, 940,001 20. Think about that. Now, I think when most people see this Tyson, what they think is that's the withdrawal amount. That's not the withdrawal amount. It's just taxes. That's the taxes that they're paying on that. And of course, like we said, it's grown at 5%. And uh, I wish we could say that was all, but that doesn't even include the taxes that they pay on social security. That's right. Which we're not showing on top of that. Um, so folks, this is the reality. When you look at forward-looking tax scenario and what this can look like, this is a big deal.

Speaker 1 (19:12):

And we're gonna continue this example with Bob and Susan so that you can say, okay, what can we do about this? Because we wanna give hope today, right? It's not all about bad news. We wanna show you how to change the scenario to your favor, because the reality is you've got more control over this before you retire and through your retirement than you know, and we wanna help arm you with those tools to do it. And most people, when they think about how can I minimize taxes, they just think about, okay, I'm gonna save a few deductions like we talked about earlier. But this, this idea here is what if we converted our this ira, um, or 401k or 4 0 3 [inaudible] or whatever you have any tax deferred retirement account into a Roth. Now Roth is the first thing that most people think. They think that's the only option, but there are other options.

Speaker 1 (20:00):

The i r s code 77 0 2, 77 0 2. Um, there's, there's some other options that are available, which we're not gonna go into in great detail in this. But let's just, let's look at a strategy. What could we do? What would be the impact if we were to reduce this down? Well, again, when you talk about reducing it down, Ryan, it it is you wanna avoid, we wanna start moving this money before you get to required minimum distribution age at 72 because you'll be forced to withdraw this money at that point. We want you before that while you're still working and we still have this 40 year low in, in what tax rates are for you to take advantage of those things because there's always going to be unexpected turmoil when you retire anyways. So let's proactive and let's make things happen right now. And so, first of all, the difference between an IRA and a 401K versus a Roth is on an IRA and a 401k, you get that money deducted, you get to take a tax deduction when you contribute it, but all of that money when you get to retirement is taxable.

Speaker 1 (21:04):

And and for most people in America, that's the primary source that they have their retirement savings in. So we wanna help you to, to, um, make this a different scenario down the road. So a Roth in contrast is tax free. Uh, when you pull it out, you have to pay the taxes upfront, but you don't have to pay taxes down the road. You don't have to deal with RMDs, which means also tax, uh, free growth and flexibility when it comes to your withdrawal strategies. And I love this quote from the Motley Fool that says, A Roth conversion is the one retirement planning move that could potentially eliminate your future taxes. How does that sound? Potentially eliminate your future taxes. And in addition to reducing or even eliminating taxes on your retirement account with withdrawals, a Roth I r a can also help you avoid taxes on your social security benefits.

Speaker 1 (22:00):

Folks, this is a big deal. Um, most people don't realize this. They don't think about that. It's not only the taxes they save on the conversion, but also the taxes that, uh, they're gonna save on their social security. And this really adds up and taxes on your social security benefits. Well, they're, um, they are triggered from higher taxable incomes. And folks, this is coming. This is absolutely coming. So the threat of future tax increases, this could be one way that you could dramatically reduce your taxes and keep more money in your pocket. And Tyson, let's continue on with Bob and Susan and see what this does for them. Yeah, so let's go back to Bob and Susan. And we already talked about how they paid $940,000 in taxes because they didn't take control of their situation. Now let's, let's go into what we call that forward-looking tax analysis, where we're looking out the front window.

Speaker 1 (22:52):

We already went over that left-hand side. We already know that if they did nothing, if they did no proactive planning, um, they didn't look forward at all, they're gonna pay that 940,000. Now, are we saying looking at forward-looking tax planning, that you're gonna get down to zero? Mm-hmm. Probably not. Yep. In, in fact, in this example, they still paid $299,661. But what we're doing is we are helping you to put money back in your pocket because the difference is $640,459 by moving that money over proactively. Now, that's not Trump change your lunch money. Tyson, that is not Trump change. That is not lunch money. And what we do is we again, use customized analysis. We help you to look at what your current tax bracket is, how much money you've got in your retirement accounts. We do all the calculations for you to show you, not just Bob and Susan's example, but what your difference could look like.

Speaker 1 (23:47):

And in many cases, it's tens of thousands. In most cases, it's hundreds of thousands of dollars that make a difference. So before, here's Bob and Susan, the original tax bill, 940,120, the new tax bill, 299,661, that total savings of $640,459 in their pocket. The important thing that we want you to take away from this is what about your number? Yeah, what does your number, we call it your get more with boss number. What does that look like for you? And, um, you know, this is something that you can't just leave to chance. You need to take proactive action. There's so many things that you can't control right now. Now is a good time to say, well, what does this look like for me? How could I, uh, do this same thing for me? Now, everyone's a little bit different. Your scenarios are gonna be, uh, different of course.

Speaker 1 (24:44):

But that's where we want you to use these strategies. Well, and a lot of people say, well, I've already looked at a Roth. It's not gonna really work for me. Or I can put, uh, so much a year into a Roth, but how do I take all my money outta my IRAs and 401ks and put it into a Roth? Aren't, aren't I gonna pay through the nose and taxes? I don't want to deal with this all at once. Well, the good news is, is we look at this and we, again, customize it so that you're paying the least amount in taxes. We walk through the scenario with you. It may be a multi-year strategy, and it may not be a Roth, it may be that 77 0 2 tax code, um, that uses some very specific strategies that are not gonna be for everybody, but it may be for you.

Speaker 1 (25:23):

There's also other things like tax loss harvesting that can happen, um, where you sell some of your losers in your portfolio and, and you are able to also sell some of your gains and offset those in taxes. There's all different types of tax strategies and what you don't know truly can hurt you. And that's why we're offering this today. So in summary, here's what we've covered today. What are the three strategies that you can do that could save you a fortune in tax and retirement? Uh, number one, understand the difference between tax preparation and tax planning. And just don't file your taxes on April 15th. Take advantage of forward-looking tax planning. Uh, number two, have a withdrawal strategy for your ira, 401k or other retirement accounts, because this is not only gonna affect taxes, but could also affect your Medicare premiums. And number three, look at, look at these, uh, options.

Speaker 1 (26:15):

The Roth conversion, the section 77 0 2 of the IRS tax code. And these are things that you can take proactive strategy on. Um, and Tyson, why is that important right now? Well, the reality is as many experts and economists are heating the warnings, now taxes must go up. There's really no two ways about it. But as we said earlier, Ryan, the good news is we're giving you this window of opportunity. You, you took action to listen to this webinar today. Now we're gonna give you the opportunity to take advantage of some of these tax planning strategies right now that could help you reduce or primarily eliminate in some areas like social security tax, avoiding, uh, increases in Medicare, all of these different things where you can take proactive steps. Right now, we've helped thousands of families, um, right here on the Wasatch front, um, with this exact same, uh, strategy.

Speaker 1 (27:09):

And the big question is, how much money could you save in taxes in retirement? And we want to help you, um, as an individual. So many things are changing, but this is one thing that you can control. And Tyson, how can we help our families? Well, again, most people don't realize it, but taxes are lower today than they've been in 40 years. We've talked about that over this webinar, but obviously that's about ready to come to a screeching hole. President Biden has already signaled that capital gains taxes going up, corporate tax rates are going up, tax brackets are possibly going up. There are so many ways that taxes are going up. So you've got this short window of opportunity to take advantage of some defensive tax planning strategies right now that could literally save you tens of thousands, if not hundreds of thousands of dollars.

Speaker 1 (27:58):

And we wanna show you how you could reduce or possibly eliminate some of these taxes with our free customized retirement tax analysis right now. And in this analysis, you'll learn how you could reduce or even eliminate the taxes on your ira, 401k or other tax deferred retirement accounts, your social security benefits, your investment income and more. And let us just explain a little bit how this works. Uh, what we do is we have you send us some basic information that you provide to us, and we determine the tax saving strategies that are best suited for your specific situation when it comes to your retirement accounts. And then we'll sit down and share exactly how these strategies, uh, could work for you so that you can see exactly how much money you could save. And the savings, as we've talked about, could be significant. Now here's what everybody who comes in and sees us says, they say, number one, you're one of the only firms that I know of that actually offer this as a service.

Speaker 1 (28:54):

There are a few others out there who do a retirement tax analysis, but they're charging thousands of dollars for this, in some cases up to $3,200. And we don't want you to pay that. We're doing this absolutely free for those who are on the webinar today. But again, the time is limited. So here's the deal is we work, a lot of times we work with people who have saved 500,000 to several million dollars. But if you save more than $200,000 for retirement, we want you to call right now and schedule your retirement tax analysis right now at 8 0 1 8 9 6 96 22. Or you can simply just click on the button that you see there on your screen. Uh, remember, we want you to call today. You don't wanna miss out on this. So many things you can't control. This is one thing you can control when it comes to retirement. Just simply pick up the phone, give us a call. [inaudible] 8 9 6 96 22. Tyson, this has been a good webinar today. Yeah, thanks so much for joining us today. We're looking forward to hearing from you soon. We want you to stay safe, be healthy, and most of all, thanks for joining us. And lastly, we're gonna leave this on the screen for a minute or two just to, so that you can call [inaudible] eight nine six ninety six twenty two or click on the button on your screen. Thanks, and we look forward to seeing you soon.