Revisiting The President’s Tax Plan

Welcome to the Money Wisdom Podcast where Joel Johnson, CFP® of Johnson Brunetti, reviews retirement and investment topics weekly. Let’s get started…

Today’s Wisdom:

As we enter tax season, everyone has taxes on the brain. Joel revisits President Trump’s tax plan and examines how it’s affecting clients in its first year. We’ll also feature a discussion on some of the questions you should be asking yourself and your advisor as you plan for retirement.

What You’ll Learn:

[00:48] – How The New Tax Plan Is Affecting Most People.

  • Most clients are paying between ten percent less and ten percent more this year in taxes. Joel shares examples of how the tax plan has affected his clients.

[2:28] – People Confuse Their Tax Refund With How Much They Paid.  

  • You might assume you had a good tax year if you received a large tax refund as a result of the tax plan. However, it’s possible you still paid more in taxes than in previous years.

[3:00]  – How To Avoid Confusion.

  • Look at your total tax bill. If you’re getting a large refund from the government, you’ve basically given the government a loan, and you’re actually losing money by not collecting the interest that would accrue on that money were it in the bank or a CD.

[3:32] – Don’t Loan Your Money To Uncle Sam.

  • Most folks would be better off saving their money, rather than overpaying and getting a tax refund.

[4:08] – Questions You Should Be Asking But Probably Aren’t.

  • You probably have a lot of questions about retirement, but are you asking the right ones? Learn the questions you probably should be asking your advisor.

[4:28] – How Much Will Tax-Deferred Savings Cost You In Taxes?

  • We tend to get locked in on what we’re paying annually in taxes. After all, we did start the show by discussing how the new tax plan could affect you THIS YEAR. However, you need to consider how you could alleviate your tax burden over the long-term.

[6:33] – How Much Money Should You Withdraw This Year?

  • As you plan for retirement, you probably think about how much money you should save. However, you should be thinking about how much income you’ll need each year.

[16:02] – What Medical Coverage Will You Need Other Than Medicare?

  • Medicare is a useful program, and it can help you to save money. However, it doesn’t cover everything. You need to have a plan for the things Medicare won’t cover.

[17:30] – What Are You Paying In Fees And Commissions?

  • You really need to read the fine print on your investment statements. As you do, you’ll probably discover certain fees you never knew you were paying. Understand what you’re paying for your investments.

[13:14] – Discover Our Quote Of The Week.

Be fearful when others are greedy and greedy when others are fearful.

Warren Buffett
  • Joel explains why you shouldn’t follow the investment masses.

[12:42] – We Feature A Bit Of Trivia.

  • What single date in American history holds the record for highest flower sales. Click here to learn the answer.

Final Thoughts:

“Understand what you’re paying, and what you’re getting. Most people don’t understand how much they’re paying their advisor. ”  – Money Wisdom

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Thank you for listening!