“RETIRE WITH INTEGRITY” PODCAST

The Principle:

A recent Forbes article claims you can increase your Social Security benefits by $200,000. Brian weighs in on whether this is too good to be true.

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Honest Takes:

00:15– The Claim. 

• Forbes Magazine recently published an article suggesting with proper planning you can increase your benefit by $200,000.

00:49 – The Reality. 

• Social Security planning is meant to play a role in your comprehensive retirement plan. While it’s true you can withdraw a larger benefit by delaying your first withdrawal, this article takes Social Security planning out of the greater context of your retirement. Determining when to take Social Security isn’t based solely on how large a benefit you can withdraw. It needs to fit into a larger picture that incorporates your other income streams.

1:38 – An Example.  

• Let’s say you retire early, and wait until you’re 70 to take Social Security. If you don’t have enough other income, it doesn’t matter how much you can make by waiting to withdraw your benefit. You’re going to run into financial trouble as you draw down on your other assets. That’s why it’s essential to factor Social Security into your comprehensive retirement planning strategy.

4:05 – The Myth Of Delaying. 

• Reality suggests that if you live a long time, it might be best to take your benefit early. Doing so increases the amount you’ll withdraw over time. Of course, none of us are guaranteed the promise of tomorrow. It’s impossible to know when we’ll pass on, but we can plan ahead.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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“RETIRE WITH INTEGRITY” PODCAST

The Principle:

Join us as we examine a tax-planning strategy that could save you money. Brian unpacks the idea of pass-through deductions.

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Honest Takes:

00:16 – What Are Pass-Through Deductions? 

• Pass-through deductions are often used by small business owners to maximize in tax savings. Many small business owners operate as an S-Corp. They might also be classified as an LLC while being taxed as an S-Corp. In these situations, a $40,000 loss of revenue passes through your business and shows up on your 1040 form when you go to file your taxes. This is where we get the term pass-through deduction.

1:19 – Changes To Pass-Through Deductions. 

• These days, changes in legislation have enabled business owners to take advantage of all sorts of tax savings strategies. Pass-through deductions have changed as well, and you need to work with your advisor to take advantage of new benefits.

2:36 – Take Advantage Of The Tax Law.  

• A business owner we work with wanted to sell his highly appreciated stock. His CPA told him to give it to a charity to alleviate his tax burden. If he gifted the highly appreciated stock to a charity the capital gains would be eliminated, and this would help pay his Virginia state income tax bill as well. In many cases, his federal income would be reduced as well. This small business owner also had children enrolled in a private Christian School. We encouraged him to take advantage of the tax credits that accompanied giving to organizations like this school. Basically, the law would allow him to donate to the school, and in turn, the state would give him 65 percent of the gift value of his donation as a state tax credit. The capital gains taxes on his investments would also be wiped away in that situation.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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“RETIRE WITH INTEGRITY” PODCAST

The Principle:

Most people spend their working years cultivating one income. However, in retirement, it’s essential to develop multiple income streams. Brian explains.

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Honest Takes:

00:12 – A Bit Of Context.

• Dorie Clark is the author of Entrepreneurial You. She says she discovered the importance of having multiple income streams once when she was laid off from her job. She now has SEVEN different income streams. She argues that much like a stock portfolio, you need to have a diversified group of income streams. Especially in retirement, as you walk away from a paycheck for good, you need to be sure you’re generating consistent, monthly income.

1:12 – Can Retirees Build Multiple Income Streams?

• Sure you can. Your company pension, part-time job, Social Security check, and stock dividends will all work to help you generate income streams in retirement. Don’t forget about real estate either. Selling your land and generating income from rental properties also create a paycheck. Furthermore, retirement presents you with the freedom of being your own boss. Many retirees these days choose to go back to work on their own terms. Whether it’s a part-time job, turning your real estate hobby into an investment, or finally starting your own business, there are all sorts of ways to earn additional income in retirement.

5:17 – Diversify Your Income.  

• Multiple income streams protect you in times of financial drought. They help take some of the risk out of your retirement plan and keep you from relying to heavily upon your retirement accounts and dividend-earning stocks. Having multiple income streams can also help to mitigate your tax burden in retirement.

Today’s Truth:

Other Virtues:

Dorie Clark’s Book: Entrepreneurial You

The host: Brian Bowen – Contact

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