8/1: Hidden Tax Traps

So The thing to keep in mind when we talk about this today is that most Americans spend 30 or 40 years trying to build a million dollar retirement account or multimillion dollar retirement account.

But very few spend even 30 minutes thinking about how that million dollars will actually be taxed.

Well, that's not the fun part, Terry.

They like the accumulation part because they can see a bigger number.

And then it can be emotional type strategy.

And if you see that money shrink or not, as you build your, I guess you'd say your retirement paycheck for the rest of your life, because you are...

You're on your own, so to speak.

That paycheck is not coming in unless you receive a pension or Social Security, of course.

But beyond that, the rest is up to you.

So are you making the most of your retirement? And we're going to talk about some of the hidden tax traps in retirement.

Well, and I think that's really such a good point, Terry.

I mean, we see it countless times where you've done a great job accumulating for decades.

You think you're doing the right job.

You're putting it into your 401k, your pre-tax IRA, and just pummeling assets towards that.

And you see the big top line.

But maybe it was done without a plan to say, what is this actually going to mean and turn into when I need to start drawing on the funds? So, I mean, that's where, you know, we talk about the hidden tax traps in retirement.

This is applicable at all ages and stages.

I mean, these are great things to be thinking about as early as possible.

I mean, this is relevant in your in your 20s to start thinking, you know, down the road, what does this actually mean for things? And, you know, I love talking about retirement with younger people just because, you know, it seems like this fictitious thing, right? You know, and but planning early is huge.

And, you know, right leading up to retirement, this is important.

And there's going to be a lot important today in retirement.

Yeah, I think years ago, people didn't think about it until they crossed over the 50, age 50 line, you know, that type of thing.

And it's like, well, I can see 15 years from now that is the finish line for accumulation.

And they treated it as a finish line.

It's not a finish line.