Bridgeriver LLC - June 2020

Nest Egg


JUNE 2020

To Live a Tax-Free Retirement Putting the Pieces Into Place

I recently started doing an online webinar series. I wanted to answer questions many people have related to navigating retirement. One big question is, “How do I set up my accounts so I’m not paying taxes in retirement?” You can find the answer to that question and others at , where you can register and watch my webinar for free. I answer questions and go in-depth on this important topic. You’ll get deeper insight into this topic that you won’t find on my YouTube channel,

And remember the Trump tax plan that was aimed at lowering the taxes of most Americans? That plan was not meant to last forever. A sunset was built into it. In 2026, that tax plan comes to an end. Anyone who saw their taxes go down as a result of that plan will no longer see those benefits. If you’re in your 40s or 50s, now is a great time to start setting up your accounts to reduce your tax burden, if not outright eliminate it. A big part of reducing or eliminating that burden comes down to your Social Security benefits. How is this possible? It all comes down to the fact that if Social Security is your only source of income, it’s generally tax-free. How Social Security is taxed is defined in “Publication 915” — an IRS publication that you can find online. Many people assume that if you collect X amount of Social Security each year, you will fall into the corresponding income tax bracket. This isn’t true at all. In “Publication 915,” you can see that Social Security is taxed very differently than all other sources of income. How can you take advantage of this? It’s all a matter of arranging your other assets so they don’t interfere with Social Security. The first step is figuring out exactly how your Social Security benefits will be taxed — if at all — and then the rest will fall into place.

Here’s why this topic is now more important than ever: In my opinion, the more money the Fed prints, the more taxes will go up. They won’t go up right away. But eventually, you’ll be hit with the increase. It’s something every taxpayer is going to have to deal with. In the Great Recession, the government printed $4.2 trillion. By the time the COVID-19 crisis is over, it’s likely the national debt will have increased by another $6 trillion. Printing money to stimulate the economy and help businesses and individuals may seem like a good idea to some, but it comes with consequences. It can lead to inflation and higher taxes — both which are passed on to the small businesses and individuals the stimulus was meant to help.

To learn more about how to get all the pieces into the right place, head over to . And if you have further questions about setting yourself up for a tax-free retirement, then don’t hesitate to get in touch!

-Dan Casey



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