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Ross Perot, NYC, Mexico discussed on WCBM Programming

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Now more from Ross Perot you know the voice of the voice I just can't okay but that's what we develop from NYC to fill the make that that was when he was performing with Mexico before he went out on his own and he was willing probably wouldn't guess probably not he did I don't know if you remember the the love song for princess bride that was probably his biggest hit what and he did that with Mark Knopfler okay let's back in the day when I was a good movie ever princess bride in now as before your time is you have a color TV back to watch well Joe Biden finally came out of his basement what hibernating for sixty days finally came out of his basement the take a knee in downtown Wilmington of course with this face mask on that expressed his sorrow for the rights that were occurring there and take his side with the look like he took a side with the writers I don't know it but he's alive that he of all currently so yeah so that's a good sign him anyway let's talk about what we got this week's they say segment you know here's one for you big rod they say that your taxes go down in retirement because you have less income but isn't it a bit more complex than that you know when you're planning for retirement it's fun to contemplate all the cruises rounds of golf restaurant meals you've had you've earned it however many retirees don't take into consideration the cumulative effect of federal and state income taxes on the withdrawals from their nest stakes you know finding tax efficient investments is the key to successfully saving for retirement so we get you to give a cumulated Apollo of money we're gonna take this money out and spend it right enjoy your retirement but you have to take taxes into consideration unfortunately most forms of retirement income including your social security benefits could be taxed well of course withdrawals from your IRA raising your four oh one K.'s your traditional iras anyway are gonna be taxed by the the the the IRS and unless you live in one of the nine states without a traditional income tax you can expect your home state like here in Maryland to doing you in retirement as well that your Maryland doesn't taxes security benefits or railroad retirement income yeah but they're going to tax those IRA withdrawals four oh one K. withdrawals in the Kiplinger rates Maryland is one of the least tax friendly states a retiring so you want that retirement income plan to be as tax efficient as possible you know savers love their tax deferred retirement accounts they love their ire raised their four oh one K.'s especially in a because contributions to the plans generally reduce their taxable income to save some money on their tax bill in the current year that said there's they're saving money now but their savings their dividends and their best make gains continue to grow tax deferred not tax free what many tend to forget is that they will pay taxes down the line when they retire and start taking withdrawals and that those taxes apply to their gains and their pre tax deductible contributions at some point you must withdraw money from the accounts the required minimum distribution the arm dis Kickin it aids used to be seventy and a half and they raise the rate to seventy two seventy two seventy two for holders of traditional IRA's and four oh one K.'s no but if you're on the old plan where you already had to start taking out your Akbar Andy's no you can't the you got to take it you should always consider I love Roth IRA conversions I love raw Tyreek accumulations and if you think the tax is going to be higher down the road while the specially for his knuckle heads you know spend more more more money in the these bailouts and stuff like that that's so raw diaries come with big long term tax advantages and so does one of my favorite things cash value life insurance where we can grow that money based on index accumulation these things upon paying out like ten thirteen percent interest tax free you know I read I read some articles on the internet the gym hardball football coach at Michigan did part of his compensation is a is a life insurance policy with you would be surprised you know what we should talk about that in the show because a lot of corporate executives like G. E. of big companies part of the pension part of their plan is cash value life insurance interesting so yeah eve even these big banks are you know the the they're actually bank is required to have a certain amount of cash value life insurance in it its reserves because it's considered what they call tier one money so yeah we'll talk about that another show because I want to talk a little bit more Roth Tyrese com with long term tax advantages and contributions to Roth iras that are not tax deductible now but they're going to be tax free down the road two important cabbage you must've held your account for at least five years and we're in a Roth IRA before you can take tax free withdrawals and although you can withdraw the amount you contributed anytime tax free you generally must be at least fifty nine and a half to be able to withdraw the gains without facing a ten percent early withdrawal penalty now but that you know just what the listeners to know that for this year because of the cares act there is no ten percent early withdrawal penalty so if if you're fifty years old yeah you don't have to be fifty nine and a half which is you know you've been hit hard by this coronavirus you can take the money out now will be taxed as ordinary income but the advantage this year is now you get to spread that over three years so that's just something something important to consider we get it you.

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