Home RECENT RADIO SHOWS Taxes: Sign of the Times

Taxes: Sign of the Times

In Mathew 16, Jesus confronted the Pharisees and Sadducees when they tried to test Him, saying that they knew how to interpret a red sky but couldn’t interpret the signs of the times. This week, Hans and Robby talk about the fear and confusion of retirement taxes. People tend to worry when their tax return is smaller than expected, while in reality, this is no cause for fear because the tax rates holistically have gone down. It’s important to know the difference between retirement policy and politics so you can plan financially and live well.   Hans recently participated in a webinar with IRA expert Ed Slott and discussed the S.E.C.U.R.E. Act that recently passed in the House of Representatives. Hans says it’s crucial for financial planners to pay attention to new tax rates and plan ahead for their clients’ best interests. A single person can have an income up to $40,000 and a couple can file jointly with an income up to $78,950 to qualify for a 12% income tax. The next bracket allows a joint income up to $168,400 and a single income up to $84,200 for a 22% income tax. Robby talks about how a lot of families will find themselves in those brackets, and, instead of being afraid, should save and think about the future. You can generate more income by converting traditional IRAs or 401ks to a Roth IRA. This will allow you to pay taxes on the money going into the Roth in the spring and take advantage of the 12%, 22%, and 24% brackets. Robby says it wasn’t that long ago when the tax rate was 30% or 34%, and right now, with the low rates, there’s an opportunity to save and manage your money shrewdly.    Most people had a pension and savings to prepare for retirement 30 years ago. Now pensions are less common and 401ks, tax deferred savings plans, and IRAs are popular. These accounts give the impression of big balances, but that money hasn’t been taxed yet. Because of this, there’s not as much money in those accounts as people assume. Converting this money to a Roth over several years will minimize your taxes at a lower rate. Even though you are increasing your current taxes,  you’ll be saving money down the line and creating a stable retirement income. Up next, Hans and Robby talk about the S.E.C.U.R.E. Act currently being processed in the Senate. The S.E.C.U.R.E. Act stands for Setting Every Community Up for Retirement Enhancement Act 2019. The bill is intended to help people better prepare for retirement by getting them to use their IRAs.   Because of this, the S.E.C.U.R.E. Act has changed the policy concerning beneficiaries. If a spouse is named beneficiary, they’ll inherit the money in an IRA with no change. But if children are named beneficiaries, they can only stretch IRA taxes over ten years instead of their life span. Hans says if the goal is to leave as much money as possible to your heir, you should meet with a retirement advisor to help minimize potential taxes. It could be that life insurance is a better alternative to an IRA. The point is, tax bracket management is the key to secure retirement planning. Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on CardinalGuide.com for free! You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com.

Finishing Well
Finishing Wellhttps://www.cardinalguide.com/finishing-well/
Retirement planning involves a lot more than just managing your money. This show is the complete guide to planning for and living in retirement, helping families finish well. Host Hans Scheil will discuss a new topic every week ranging from Social Security and Medicare to IRAs and taxes. Follow along each week by downloading the corresponding chapters below for free! New episodes air: Finishing Well Schedule on Truth Network
- Advertisment -

Recent Posts

Try Standing in Joseph’s Sandals, Part 2

The King's Arrival: A Study of Matthew 1‑7: A Signature Series

Reversing Discrimination Consequences

To support this ministry financially, visit: https://www.oneplace.com/donate/222/29 The truth is, even Christians who believe we’re all equal under God can treat some people like they’re...

The Power of Southern Gospel

Meet Radio-Personality Rodney Baucom!

Bible Wonders – GUARD YOUR HEART

Bible Wonders with The Christian Car Guy

He’s On The Throne

Dr. Michael Youssef shares a timely message of hope and clarity amid one of the most challenging and divisive times our world has ever...

“Do You Believe…?” (Part 2 of 3)

The blind man in John 9 couldn’t understand why the Pharisees wouldn’t believe his story. The Pharisees couldn’t admit that Jesus was the Son of God—or maybe they just wouldn’t! Hear the full story when you join us on Truth For Life with Alistair Begg. L

Best of 2020: Why Does God Allow Trials in the Life of the Believer?: To Comfort Others

School kids love to whisper something to someone and say “pass it on.” Remember doing that? But today’s insight is worth passing on in...

Families Are Dysfunctional…but God – Part A

All of us experience times of desperation, but as James Montgomery Boice said, "If you understand those two words, 'But God,' they will save your soul. If you recall them daily and live by them, they will transform your life completely." In this series, Skip Heitzig explores the "but God" moments of David, Jonah, Moses, and other biblical figures, encouraging us to let the Lord turn our personal periods into pivot points.

The Father's Voice Part 2

When in danger, every child craves the security of a father’s embrace. What many Christians may not realize is the provision God has made for us as our heavenly Father. We can be sure of His care no matter what happens here on earth. Click he
%d bloggers like this: