- Don't procrastinate getting taxes over with
before they go up drastically.
In this educational episode,
I'm gonna talk about the Tax Cuts and Jobs Act
that was passed in 2017 by Trump.
It's going to expire, or sunset,
at the end of the year 2025,
meaning that in the year 2026, unless they change something,
taxes will be going up automatically,
and I'm going to show you the negative impact that will be,
and what you should be doing in advance of that occurring.
(upbeat music)
So I'm Doug Andrew.
I've been a financial strategist
and retirement planning specialist now
for nearly five decades.
I've been helping thousands
of people optimize assets and minimize taxes,
and prepare for a comfortable retirement
where they will not outlive their money.
Now what I normally do is show people how to,
at retirement, do something totally different
than maybe what they did for retirement.
What do I mean by that?
Well, 91% of Americans, I think, are duped
into putting money into tax deferred accounts,
like IRAs or 401Ks, being told that they're gonna be
in a lower tax bracket when they retire.
Do you know that for the last 25 years,
most savers who accumulate any type
of a respectable retirement nest egg are not
in lower tax brackets when they retire?
They usually don't have the deductions anymore.
Their kids are gone.
If they're not gone, you can't deduct them anymore.
They've paid off their house.
You don't have that deduction anymore.
You're not contributing money
to IRAs or 401Ks during retirement.
You don't have those deductions.
If you were a business owner,
and you got out of your business,
you don't have those deductions anymore.
And guess what?
Because of irresponsible government spending
and the printing of money,
taxes will be going through the roof
and inflation is really a hidden tax, okay?
And so that's why I've been advising people
for years, don't procrastinate.
Don't keep putting off and deferring.
You wanna get taxes over and done with sooner than later.
And so one thing that's going to create urgency here
is when President Trump went into office in 2017,
he passed what was called
the Tax Cuts and Jobs, you know, creation.
It was the Jobs Act that was established,
and tax rates went down.
Now, as of the recording of this video episode,
these tax rates have been staying there,
but they're set to sunset, or automatically go back
to the tax threshold rates that existed in 2016,
starting in the year 2026.
So the last tax year would be 2025
where these brackets are where they currently are.
Now, let me give you an example of what I'm talking about,
because my advice to many, many people is,
hey, especially if you're over the age of 59 and a half,
you may wanna get the money out of those IRAs
and 401Ks sooner than later at today's lower tax rates,
and also while your account values are lower
if we're in a dipper recession.
Why do you wanna wait around until your money gets back up
to the high water mark?
See, you should get the taxes over
and done with while your account values are lower,
and ride the market back up again tax-free.
That's another topic.
What I wanna do is show you
that if you are a single tax payer, for example,
under the current tax brackets
10, 12, 22, 24, 32, 35, and 37%,
those are the tax brackets that Trump passed in 2017.
Let's say you're a single taxpayer,
and your taxable income is over $44,725.
Well, you can make up to $95,000 and still pay just 22%.
In other words, there's $50,650 of room,
and there's a lot of single taxpayers that maybe make,
you know, 60,000.
Well, they have another 35,000 of room
before they would move to a higher tax rate.
It may behoove you to get money out of those IRAs or 401Ks
at the lowest tax rate you will ever, ever see again,
'cause if you don't use the room,
you're gonna lose it forever.
It doesn't mean you have to pull it out and spend it.
You pull it out, pay the tax, and reposition it
into something that's gonna be tax-free from now on.
And what I recommend is a LASER fund,
because it's tax-free, and it has six benefits.
I'm not talking about Roths.
Roths only have two benefits, okay?
And so if you were in a 24% bracket,
'cause you made more than 95,000,
you can actually have a taxable income up to 182,000.
That's 86,000 of room where you just pay 24%,
'cause if you wait that 24% will sunset
and go up to 28% at the end of 2025.
You don't want to lose that room.
What if you are sitting there and going,
well, I'm married filing a joint tax return?
Well, if you were in a 22% bracket,
you and your spouse made between 89,000, up to 190,000,
there's $101,000 of room there that you could use,
and get away with paying only 22% in tax.
Or if you're making over 190,000 with your spouse,
you have up to 364,000 of taxable income
before you would move into a 32% bracket.
You'll be locked in at 24%.
If you don't do that,
that's gonna jump to 28% at the end of 2025.
If you don't use that room, you're gonna lose it.
So what you're doing is you're calculating
with a tax strategist, and I can point you to those,
that can help you understand, golly,
if you and your spouse are making, you know, 200,000,
well, between 200,000 of taxable income clear up to 364,000,
there's $164,000 or you could pull out of an IRA
or 401K in that single year, and pay no more than 24%.
Why not get it over and done with before it jumps up to 28?
And you reposition the after-tax money
into something that's gonna be tax-free from now on.
Now if you're filing separate returns,
you have room as a married couple filing separate returns,
or if you're a head of a household,
you still have room that you can access money.
So if you meet with a tax strategist,
they'll show you this,
and I'm just using an example
from the year 2023 tax brackets.
It doesn't matter.
The concept has been the same for decades.
So what's gonna happen when the Trump tax cuts expire,
sunset, at the end of 2025?
Well, when they sunset,
what could that mean if they don't pass new legislation?
Well, the 12% tax bracket,
current tax bracket, is gonna move up to 15.
Now some people say, well, that's only 3%.
Well, a three is a 25% increase over a 12.
In other words, if you pay $12 in tax at 12%
on every hundred bucks of taxable income,
now you're gonna pay $15.
That's $3 more.
$3 is 25% more than $12.
Are you getting that?
That's a 25% increase in money you pay in tax.
See, people get so confused, oh, that's only 3% more.
No, it's 25%.
This is why when Biden said,
oh, we're gonna raise corporate tax rates
from 22% up to 28%.
That's only 7%.
It was actually 21% up to 28.
That's only 7% more.
No, it wasn't. It was 33% more.
Corporations, on every million dollars of profit,
used to pay 210,000.
Now they have to pay 280,000, or 70,000 more.
70,000 is 33% more than the 210 they were paying
if they now have to pay 280.
And then, you know, politicians who don't understand this,
they wonder why corporations laid off people,
changed to automation, and raised their prices,
'cause they can't just automatically pay 33% more,
but they're going, it's not 33% more, it's 7% more.
This is sometimes called funny math,
because politicians don't
understand economics, unfortunately.
Now the 22% tax bracket we have
under Trump are gonna move up to 25.
In actuality, that's 13.6% more money that you have
to shell out with the same threshold, okay?
The 24% tax bracket's gonna move to 28.
That's 16.66% more money you will pay
in tax in that threshold.
The 32 percent's gonna move to 33,
the 37 is gonna move up to 39.6.
Folks, that's what's gonna happen.
So what should you be doing?
You need to understand that if they say,
oh, that's only three or 4% higher.
No, going from paying 28 instead of a 24
is a 16.66% increase in money you're gonna have
to shell out.
And so you need to get the money out of those IRAs
or 401Ks sooner than later.
Check out doing a strategic rollout
over the next three or four years.
or else, you're gonna regret it,
You may kick yourself for not getting money out
in the lowest tax rate you'll likely ever see again.
So if this is resonating with you,
and you want to check out this strategy
that I coined called a strategic rollout,
where we've helped thousands of people,
say, a quarter of a million,
a half a million, 300,000 of unnecessary tax.
I'm thinking about one couple that had 4.6 million
in their IRAs and 401Ks.
They had painted themselves into a tax trap.
They were gonna pay 2.6 million
if they kept deferring until age 72 and taking RMDs.
We got the money out and the taxes over and done with.
I saved them 1.2 million of tax.
I wish I could have saved them 2.6,
but they had too much, but 1.2 million,
their accountant said,
oh, they can afford to pay an extra 1.2 million in tax.
I said, let's ask them.
And they said no, we would rather save it.
That 1.2 million in a LASER fund is generating
a hundred thousand dollars a year
of tax-free cash flow for their kids and grandkids
to fund college, humanitarian religious missions,
this money that would otherwise have gone
down the drain in unnecessary tax.
So study what I'm talking about.
We've taken people from the highest tax bracket
to a 0% tax bracket in five years.
Claim your copy of this book. It's my 11th book.
It's flying off of our warehouse shelves.
It retails for 20 bucks on Amazon.
I wanna gift you a copy. Okay?
So you simply go to LASERfund.com
L-A-S-E-Rfund.com, or click on the link below.
You contribute a nominal amount
towards the shipping and handling.
I'll cover the rest of that cost,
and I will pay for the book.
I'll fire out a hard copy to you via Priority Mail.
But when you're in there claiming your free copy,
if you like to listen and learn, or watch and learn,
there's options there for the audio or video.
Check out the educational webinars
that we conduct on a regular basis.
They're free.
You can even schedule an appointment to talk
to an IUL specialist with no cost,
no obligation to see how a LASER fund could benefit you.
And they can perform a strategic rollout illustration
for you to study.
But this is about you and saving unnecessary tax.
Claim your free copy of "LASER Fund."
It contains 62 actual client stories
where they have used max-funded indexed universal life,
structured correctly and funded properly,
then it is deemed a LASER fund to be able
to generate tax-free income that knocks the socks off
of leaving money in those IRAs or 401Ks,
and being taxed to death the rest of your life.
(upbeat music)