Big beautiful bill and more
Tax planning will forever remain an important part of retirement planning
You might want to check out this recent AOL article where I was quoted:
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The “One Big Beautiful Bill Act” (still can’t believe that’s what it’s called) became law on July 4th.
I was planning to share my thoughts on how this new legislation will impact those approaching or already in retirement, but then I found this article:
It’s written by friend and colleague Brenna Baucum.
Brenna joined me for an episode of my podcast back in January, 2022:
As I’ve said before, retirement planning is tax planning.
And these latest changes create more opportunities to include tax planning alongside your retirement income plan.
Note: my tax planning and retirement income planning tools have already been updated to reflect this new legislation.
If you’re interested, here’s an updated “key financial data” PDF that reflects the latest tax updates:
Speaking of taxes and tax planning, I had a conversation with a client just last week and explained how income tax brackets work.
This client believed - as many, many folks do - that if you make enough money to fall into the 32% tax bracket, for example, that every single dollar you earn is taxed at 32%.
Thankfully, that’s not how our income taxes work as I explained in this article from last year:
Lots of people mistakenly believe that you want to avoid the next higher tax bracket at all costs, and if our tax brackets were “regressive” that would be the smart thing to do.
But our tax brackets are “progressive” or “marginal” and only the dollars that spill into the next tax bracket bucket are taxed at the higher rate.
Maybe this is a helpful reminder for you or someone you know…
I have the greatest job in the world and love the work I do.
I get to have interesting conversations with interesting people every day.
Sometimes the conversations are fun, easy.
Othertimes, not so much…
But they’re always interesting.
I’ve shared in the past some of the conversations I’ve had with clients:
I can share some of my recent conversations again if that would interest you.
Or I can write about anything that’s on your mind. Or that you have questions about.
Either way, please reply or leave a comment and let me know what you’d most like me to cover in a future weekly message.
Thanks!
I appreciate your continued readership.
Until next Wednesday,
Russ
Well done Russ!