How to Reduce Taxes in Retirement

Joe and Al discuss the recent Power ball drawing and what NOT to do if you won ( article by Business Insider). The two also cover the recent volatility of the market and how investors should react. This hour is all about what to do if you’re nearing retirement and how you can save money in taxes. Find out why you should consider a Roth IRA if you don’t already have one.

3:03 “Business Insider did an interesting article on the 10 dumbest things you can do if you win the Powerball”

4:21 “If you win the lottery, make sure you develop a media plan before you cash in that winning ticket. Here in the state of California it’s public records so you will be known”

9:11 “Today what we’re going to talk about is this perfect storm of events facing anyone retiring today and what you can do to protect yourself”

11:48 “The truth is, volatility is normal for the stock market, but when it comes back as it has the past year or two, it seems a lot scarier”

14:28 “You have to understand a little bit of what’s going on in the markets today and then what are the appropriate actions that you have to make today given the news”

16:15 “If you are currently retired or maybe ten years from retirement, there are different moves you have to make”

16:38 “If you are in retirement, you have to be in defensive mode to make sure you’re not going to lose a lot of your principal to market volatility”

21:52 “Even if you’re 65 and want to retire in a few years, start right away. It’s amazing how a few changes right now can drastically change your retirement”

25:58 “The key is if you can make moves right now that are going to impact your 2016 taxes…the truth is, taxes don’t stop when your paycheck does. When you retire, you still pay taxes when you tap your retirement nest egg. It comes with all sorts of new rules, but also opportunities if you understand what they are”

29:57 “All of you that are listening to this program—the law changed a few years back that says there is no income limitation to move money from an IRA to a Roth IRA. Before, you had to have adjusted gross income under $100,000. Not now. If you have a million dollars or if you don’t have any income at all, you can take money from your retirement accounts and convert them to a Roth IRA. Why would you want to do that? I want you to pay the tax today because I believe taxes are only going to go up, so you can pay a little bit of tax today and get assets into an account that will forever grow tax-free for you”

34:09 “When the market is down (and it’s been down), this is the best time to do Roth conversions because the future recovery will be tax-free”