Taxes in Retirement

You're listening to the Truth Network and TruthNetwork.com. Welcome to finishing well brought to you by Cardinal God� Certified financial planner belonged to child best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well wow what a treat we have for you today on finishing well was for the five planner Hans Schild and today shows titled wisdom on taxes like Robbie that's pretty bold you just jump up and say wisdom on taxes. Well, there is some illumination in the Bible is really clear on this is just a beautiful thing when you look in Revelation chapter 3. When you finally get a chance to look at the throne that Johnston brought up to that.

Here's the seven torches of God that are flaming illuminating things so that everyone can see what all is going on and there's a wonderful passage in Isaiah 11 that most scholars would tell you, and I believe are illustrating to us what those seven torches are doing and they are the seven anointing's of the Messiah that skip being described by Isaiah there in Chapter 11 and the first of those is this word that were using today on taxes, which is wisdom. But the beautiful thing is the second one is understanding because how wonderful is it when you put understanding with wisdom and then the third one is counsel, which counsel has to do with you.

One of the plans that God has with the direction he has for your life and your taxes. So when you take wisdom and you put together, understanding, and that you have God's plan through counsel, you know, it's a pretty neat way to navigate all that and then the fourth one is might, and I think if you're around Hans for any period of time and you got to know him as I know and use in this realm. There's a lot of power. That's right here that's available to us and and then we get this Ali. This idea of knowledge which is the fifth and if you were to know Hans you would be shocked at how much this man studies. Here's the man that is spent. I don't know 40 years Hans in the this business of helping people finish well and I mean he sends me article after article and study after study and he goes to all these conferences and he's constantly studying it like you would expect a good doctor to do or somebody that really really is a professional, I mean it's constant and so when you take all this knowledge and you put together with wisdom and understanding, and counsel you begin to see the illumination that brought into what you're getting to experience here on finishing well I say all this only to save it. You know, I've been no I'm not Hans.

Now I gets about 18 months or maybe a little bit longer than that and oh my goodness, I now put them in a category of a few people that I know that really are that kind of anointed that to really provide illumination because they have such a passion. God's made them in such a way that they are constantly studying, constantly trying to figure things out for so as we begin the show on taxes, you know, I just wanted to get a feel of what I sense that God's trying to show us and what you know because you listen to the show you're like me a lot you know this is an opportunity to glean the wisdom like that God is provided for us through certified financial planner Hans Fallon. After that introduction don't let us down, and I pray that I can do all that and I we we just went into a moment of prayer before we went on the air are really my one of my sidekicks and my main site. Griffith is back in the hospital.

It's not as serious as last time but he we certainly want all the listeners to have him you know in their prayers and BRI praying we hope you can be back will probably be back on the air when he gets through here, but I wanted to just stop for a moment and really just pray for Donna and his wife sees a newlywed and you can imagine, this last time it really look like we might lose them, and so having this relapse for his family. This is got to be particularly difficult: all of the God help work work work and move on and pursue in your be back here serving clients before we know what I wanted to talk about today. Today show and the topic is taxes and just to say income taxes fairly dry and the people generally just that hell man. Do I want to talk about taxes and so talk about taxes in this new secure act that is in the past year, so it's still uncertain, but it passed the house over the Senate and installed in the Senate. The common wisdom is that it might very well in the fall. Here get through the Senate and I sense is that the president will sign secure active is really to make retirement more secure so that you know this is the article you are referring to earlier in the show and specifically within that it's got a few changes that one of them is to move the retirement minimum distributions from IRAs and 401(k)s from age 70 1/2 to age 72 and that doesn't sound like a big deal that for some people that's moving to two years, and for some people is moving it one year and you think will life the government doing that in just as allotted personal simplification and then the second reason is people are working longer. People are used to be 6510, the latest you would retire and live people at 62 and 60 and you know and there's certainly people doing that but there's also a lot of people in the workforce.

I intend to be one of them and I know you are planning that Robbie is well God willing, setting out the minimum distribution age is going to move then secondly, the inherited IRA for an inherited IRA where you are now able to stretch it out over the lifetime of the beneficiary that can be moved to a cap of 10 years, so that's not necessarily good for retirees but we don't view things as good or bad, they just are comes to tax policy and what we want to do is just help our clients and our listeners to plan around these things so that is not detrimental to them or their state actually gone back before the secure act and I think you have a lot of wisdom on just a strategy for taxes as we head into finishing well is eat those years in a 65+ that has to do is sort of a cop and I'm trying to get to where you're not paying any taxes, yeah. So I wrote that in so under the new tax law you got a standard deduction of one $85,700 for just was called 26,000 if you're married couple in your or 65, and for a single individual over 65. It's almost $14,000. That means is you get to take a deduction for that amount will you actually have that many deductions are not so you know. So what it was that made well I mean what it means to me is I'm working toward having my house paid off. In fact, prevent seller larger house and moved to a smaller house just use the equity tip to live in a house like you live in Raleigh where there is no mortgage.

And you say will is as smart as a financial planner interest is tax deductible, will it is but in retirement is not deductible. If I cut $26,000 worth of deductions. Any so it is actually smart to own your house outright, and then you can go and take this deduction. Any and that really means you can make $26,000. Non-Social Security income. If you're married couple, or $14,000 and pay zero tax because it's all deductible that makes sense era absolutely and the idea of paying zero tax and retirement, but that minimum distribution enters into all that and and actually gives us an opportunity to kind of have a softer landing in a lot of different ways and so connected back to social security and this is where I really get people's attention is paying taxes on your Social Security check.

My goal in my planning retirement is pay zero taxes on myself. I just have that as a goal and I also have a goal in the way time 70 to start my Social Security work to and then I also plan to have some other income besides Social Security and I intend for that to be tax-free to some my plan for me personally and my wife is pay zero taxes and return. I'm still that said oh yeah that's always a plan well in insult with what this means is that this will be inflation-adjusted so I'm nine years away from 70 but let's assume it's about 26, 27, $28,000 of taxable income that I can have so I can make some deductions from my IRA and not pay any perception distributions from IRA like 26, 27, $28,000 worth in the year and pay zero tax on so I will leave some money in the taxable IRA when I'm in a do then is the rest of my IRA by then, is the all converted to a raw so that tax-free. The Disney account on your tax return is just wonderful blessing and jump in here tell y'all that this is finishing well, a certified financial planner haunts which finally is brought to you by Cardinal guide.com so to get the Cardinal guide.com don't forget the guide.

After Cardinal's was cardinal guide.com in their if you go to the seven worries tab you find income taxes is one of those methods so that were doing today. So there's all sorts of information in the book and workbook which are free PDFs.

All you have to do is go to the seven worries tab and download those for free. Or, as always, you can just email Hans and say send me the book right haunts absolutely you on our website. Cardinal guide.com or you pick up my email onto the Cardinal guide.com send me a note I'll be glad to send the book out to you free of charge so I think that you will be so glad she did because it's not.

You've heard them just doing today show. Talk about these tax charts and other charts and all these things are right there to begin to really give you a lot of wisdom and understanding, and counsel and knowledge which would you put all this together brings illuminations like you know working to get to see in heaven. So we got some more illumination.

There's more to this correct is more that that Hans wants to share with you today show wisdom on taxes so state and so much more finishing well, Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security data care and long-term care. Just go to Cardinal guide.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contacts on the Cardinal guide.com that's Cardinal guide.com welcome back to finishing well is certified financial planner Hans Schild today show.

I'm so glad I get a chance to listen often. I'm just a captive audience, but is wisdom on taxes and we we left our hero Hans. He was talking about his zero taxes strategy that he personally was looking into. So we don't want to touch a short amount on well yeah I you know and strategies available to Harlan in any really starts with a zero taxes. I want to pay zero taxes on myself. I want myself.

Jack be as big as it possibly can be by starting at 70 and I'm not recommending that for everybody to something will look into for you, but Social Security check as big as we can get.

And then secondly we pay zero tax on the Social Security and we put my wife Rhonda and my check. Together, and you got pretty nice. Check coming in every month, of which there is no taxes in the way to accomplish that is your taxes on Social Security are based upon your other income besides so if you make too much income taxable income beyond Social Security. Then now you pay taxes on that too much income you come back and they make you pay taxes on your immune system from a planning perspective, especially if we get somebody who's my age is like 61 and I got really nine years before I am really going to be taken my Social Security. But even if you're a little older than that. We can do some planning to actually if you're over 70.

We can do some planning as well coming to get this thing sitting here in a tax-free situation is never too late to plan the whole point of this thing is I still can make some income other than my Social Security death, pointing out earlier like as a married couple were both still alive and chicken and we we we can make $27,000 of other income, without even having any deductions, tax-free, and we can make some money over the $27,000. Other income besides Social Security just pay very small tax rate on that and this is a complicated formula that's in the book and we can certainly you don't need to really learn the formula so much is I just want to point out to you in concept is as if you stay under the threshold, and it's different for a single person is smaller but nonetheless as you can have Social Security check its tax-free and in a certain amount of other income other taxable income. The tax-free and then the way I'm going to have more than that to live on and give away in do do do do a lot of things with his I'm gonna convert my IRA to a Roth IRA. I've Artie started that process and my goal is to have it done by 70 to have most of my IRA converted over to a raw so I can withdraw from any money. I wanted to affect any of the stuff I still pay zero tax. So if I come back to secure act actually is and listen to that strategies to secure it doesn't affect you in that from the standpoint of changing from 71 and after 70 1/2 to 72.

You're actually trying to empty your IRA out as much as possible for even get to 70 right right and then 170 I'm still can have some money in an IRA because I can make some taxable income and pay zero tax on some have some money in there, but the bulk of the monies can be over in the raw and then I can just take that, it will Oregon deleted there to accumulate give my kids after I die a magic you get ultimate flexibility with the raw. I also leave some money in the traditional IRA because I can do two CDs are qualified charitable distribution so I can give to the church and I can give to other charities and that doesn't that count as a minimum distribution that does affect with district secure act so I can but it doesn't count as taxable income everybody situation is different and everybody's goal was to you know if you have a sizable income unibrow shown a business and I'm overstating this little bit because I'm probably going to still own this business at 70 and I'm probably still going to be working.

God willing. Simon is still be pulling income out of it.

So if you're in that situation got planned for some taxes so I don't want anybody to listen to the show and call me up and said I want a zero tax plan. Everybody situation is different. Everybody's goals are different and so we gotta learn all these things about people tax situation, how they view taxes but by and large we can apply this wisdom and we can give people what they want to effectively Protect them from what they don't want some said not listening, Hans. I'm thinking that wow you got these seven words which are Social Security, Medicare, long-term care, life insurance, postretirement income taxes kind of you got that.

Is that like catchall at the end of the equation because everything else kind of feeds into that strategy of of limiting your taxes.

The end because I don't want this to be the main focus in the beginning McKenna sounds like that today.

That's just too attractive event. What what it does is it leads people into bad investment minute all kinds of investments out there that tax shelters really designed around tax sheltering and some of them are good. A lot of them are bad in the dolly tax advantages, but in the end you have a high chance of losing your money getting involved in things that are scheme so I really have this at the end of the game to do this is really at the end of our plans, but I'm thinking about it from the beginning that wow, I've never heard that part of your strategy and makes absolutely wonderful sense because all these things are a building block of how you're going to finish well when you think about Emily order that you actually even place them in him took wisdom in and of itself little thing in the secure act is correct, not for sure yet another things in their I'll be glad to talk about them and keep talking about the secure act as it goes along. There is also another bill clear: Social Security 2100 act is less chance of getting past and so will move the discussion of that to when were doing the next Social Security show but yes will let everybody know that were monitoring these things we read I read just about everything I get my hands on about about what what Congress might be doing next and trying to speculate on that and then put it back into our planning some neat stuff in that accident there discussing ingested there bringing it to the table to make sure that so security is secure and anyone that we know that the you know this and I will find till 2035. This would really push it out into where are you and I won't have to worry about it at all. That plan I think with the social security bill. I think there's much less chance of getting past because they stuck a bunch of giveaways and their when they were really are called to shore up system so but but but it still gives us a little toward what might be the final bill and then it also tells us, which is a good thing that their work, which I knew they would. How absolutely well I wanted to spend a little time at the end of this today show to provide some other illumination.

As we talked about from this idea of wisdom on taxes that we talked of in Revelation women talk about the seven torches providing illumination and in how we walk through that there's wisdom and understanding, and counsel in might and knowledge and all those things come together. Kind of in this ministry. We didn't talk a lot about number six and number seven, which are these and again the seven monies of the Holy Spirit from Isaiah 11, which are fear the Lord and the delight in the fear of the Lord which you know it's interesting that the first one is wisdom and we know that the fear the Lord is the beginning of wisdom. So this almost circular discussion here that you have in this anointing with this last one being delighting in the Holy Spirit and I say that to say that if you think about the seventh day of credit creation.

God said he rested in Jesus's last word from across you know was it is finished or in your hands I commit my spirit sums that combination of just rest like God's got this. It's gonna be okay. Well, you may be wondering should I call Hansson I call cargo guide or should I call some financial person or maybe even should I go on a car let somewhere what I have discovered with people that are in Hans's position is they will not chase you, you know you your concern. Wow, if I call into their they're going to be on me by, to be getting all these emails on the beginning always calls why I've