How will the 2016 presidential election affect how much you pay in taxes? Joe and Al kick off the third season of “Your Money, Your Wealth” by discussing what the top four candidates’ plans are for ordinary income tax rates, capital gain rates and itemized deductions. Putting it all together, what does all of this mean for you and what are some strategies you can take advantage of to keep more money in your pocket? All of this and more in this episode of “Your Money, Your Wealth.”
Transcription:
1:01 “Will this presidential election do something different with our taxes? That is the financial focus today”
2:03 “It’s up to you to do the appropriate planning to make sure you can retire successfully”
3:21 “If you take a look at the amount of money people pay in taxes, it’ll be one of the largest expenses in retirement”
4:11 “Right now, we have a tax system that’s a graduated tax system. We have seven different brackets, starting at 10% and going to 39.6%”
7:20 “In the case of Clinton and Sanders, what’s being proposed there is you get to take all your itemized deductions but they’re capped at a 28% benefit, so what that means is if you’re at a 39.6% bracket, your deductions are only saving you at a 28% rate”
10:57 “There’s something called the stretch IRA; it allows a non-spouse beneficiary to take all of that money in an IRA and stretch out that tax liability over their life expectancy”
14:10 “What [the flat tax] does is hurt those who are in the lower tax brackets…that’s why I think it’s unlikely for this to happen”
17:35 “A Roth IRA conversion is taking money from your existing retirement account and converting it into a Roth IRA. The downside is that you have to pay the tax on that”
18:28 “We’re very concerned the tax rates may ultimately go up, and if you can have some of your income in retirement tax-free, that is absolutely the way to go”
23:05 “Go to the [(401)k] match, go to the Roth, then go back to the 401(k) plan”
