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Welcome to How to Retire on Time, a show that answers your retirement questions. Say goodbye to the oversimplified advice you've heard hundreds of times. This show is about getting into the nitty-gritty so you can make better decisions as you prepare for retirement. Text your questions to 913-363-1234 and we'll feature them on the show. Don't forget to grab a copy of the book, How to Retire on Time, or check out our resources by going to www.retireontime.com.
Welcome to how to retire on time, a show that answers your retirement questions. Say goodbye to that oversimplified advice you've heard hundreds of times. This show's all about the nitty gritty. Now that said, remember, it's just a show, not financial advice. It's educational.
Mike:So do your research. As always, text your questions to (913) 363-1234. Again, (913) 363-1234. Let's dive in. David, what do we got?
David:Hey, Mike. Is it worth limiting your income to get the additional senior deduction?
Mike:Yeah. It depends. So for some people, I think that if you look at the deduction, it's not a credit.
Mike:It's a deduction. So it lowers your overall tax bill. If you're in a certain category where there's not a significant amount of your money in an IRA, there's not a huge tax bill looming when RMD start, there's not any issues with legacy planning, then an increase of income doesn't increase your overall happiness, then you might wanna mitigate or govern the total tax bill each year because you might save an extra thousand dollars or so. Not bad. Right?
Mike:Mhmm. But if you're going to have a huge issue with future taxes because of RMDs, if there's some potential legacy inconsistencies of what you want, what your money to do, and so on. If you're looking to decrease, let's say, your income by $5,060,000 dollars a year just to save a thousand dollars in taxes Mhmm. Then I'd question it. So you don't wanna jump over dimes to pick up pennies, as they say.
Mike:You don't want to significantly change your overall quality of life just to save up maybe a thousand bucks or so, and everyone's different, but let's say a thousand bucks in your tax bill. Your money is intended to serve you. It's not about paying the least amount of money to the government. It's about finding the right balance of tax efficiency and maximum quality of life. It's tricky to find that balance that typically takes several appointments, several visits to compare the differences, and then find the right balance for you.
Mike:And I have found that it often is an evolving conversation where some years, you're gonna be under deduction. Some years, you're over. Maybe you enjoy it until it sunsets in 2031, and then you start implementing something else. Everyone's time lanes and situations are different. So look at it from a dynamic standpoint and having different tax plans for different years and different filing strategies based on your age, lifestyle objectives, and income and investment options.
Mike:That's all the time we've got for the show today. If you enjoyed the show, consider subscribing to it wherever you get your podcast. Just search for how to retire on time. Discover if your portfolio is built to weather flat market cycles or if you're missing tax minimization opportunities that you may not even know exist. Explore strategies that may be able to help you lower your overall risk while potentially increasing your overall growth and lifestyle flexibility.
Mike:This is not your ordinary financial analysis. Learn more about Your Wealth Analysis and what it could do for you regardless of your age, asset, or target retirement date, go to ww.yourwealthanalysis.com today to learn more and get started.