Bruce Hosler welcomes a special guest for today’s episode. We discuss the critical state of the U.S. national debt and its implications for future tax rates with David McKnight, author of “The Power of Zero.” McKnight highlights the dramatic increase in national debt from $5 trillion in 1999 to an expected $54 trillion by 2033. This surge is attributed to unfunded wars, healthcare programs, and economic bailouts. The conversation underscores the lack of governmental action to address the unfunded obligations for Social Security, Medicare, and Medicaid, which pose a significant threat to the country’s fiscal stability.

McKnight points out the alarming debt-to-GDP ratio, warning that exceeding a 175% threshold could lead to a financial collapse from which recovery would be impossible. The discussion also highlights the rising interest rates and their impact on the servicing costs of the national debt, underlining the urgent need for substantial revenue sources to manage these expenses alongside government operations. These costs will almost assuredly mean higher taxes, making it crucial for investors to act now.

The conversation shifts to tax planning strategies, critiquing the financial industry’s general lack of preparedness to help individuals navigate toward tax-efficient retirement. McKnight categorizes financial advisors based on their approach to tax planning, advocating for a comprehensive strategy that includes Roth conversions and life insurance retirement plans to achieve a tax-free income in retirement.

David criticizes popular financial gurus for their inadequate guidance on tax planning and their general dismissal of specific financial products that could benefit retirees. He introduces his upcoming book, “The Guru Gap,” which exposes the shortcomings in the advice these gurus provide and offers a path to better financial planning.

Finally, the discussion addresses the impending challenges with the Medicare Trust Fund and the necessity for significant tax increases to cover the looming fiscal shortfalls. McKnight emphasizes the importance of proactive financial planning to mitigate the impact of higher taxes and ensure financial stability in retirement.

Throughout this episode, Bruce and David discuss several strategies investors can use to protect themselves and move toward a tax-free retirement.

To purchase a copy of Bruce's new book, MOVING TO TAX-FREE, go to https://movingtotaxfree.com.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of "Protecting and Preserving Wealth," we dive into the significance of moving financial assets to tax-free vehicles, a topic Bruce Hosler has extensively explored in his new book, "Moving to Tax-Free." Bruce, alongside Jason Hosler and host Jon Jag Gay, discusses the critical nature of planning for a tax-free retirement, emphasizing the importance of strategic financial planning to mitigate future tax burdens.

Bruce opens the conversation by highlighting the central question of whether tax rates in the United States will increase, decrease, or remain the same over the next decade. This question is pivotal as it directs individuals on how to plan their financial futures. He argues that due to mathematical and scientific reasons, rather than political, tax rates are likely to double in the next ten years. This prediction is supported by the impending insolvency of Medicare and Social Security trust funds, the national debt crisis exacerbated by inflation and higher interest rates, and the comparison of U.S. tax rates to those of other developed countries.

The discussion then shifts to the common but misguided question many people ask about minimizing taxes in the current year, rather than focusing on reducing lifetime tax liabilities. Bruce and Jason emphasize the importance of annual tax planning and making informed decisions about moving assets to tax-free accounts, such as Roth IRAs and 401(k)s. They argue that paying taxes now, at current lower rates, can help to prevent paying higher taxes in the future.

The conversation also touches on the reluctance of the financial advisory industry to promote moving to tax-free accounts due to potential conflicts of interest, as advisors' fees are often based on the assets under management, which would decrease as clients pay taxes on conversions to tax-free accounts.

Bruce offers practical advice for listeners to start their journey toward a tax-free retirement, including stopping contributions to traditional tax-deferred accounts and starting to contribute to Roth accounts. He also addresses concerns about the government potentially taxing Roth accounts in the future, arguing that historical precedents suggest that existing accounts would likely be grandfathered in, should any changes occur.

Finally, Bruce introduces innovative legacy planning strategies detailed in the book - a plan he calls "The Two Generation Tax-Free Legacy Plan" - designed to provide a tax-free income stream for children and protect assets from potential legal and financial threats.

For more info on Bruce's book and how to purchase it, you can visit https://movingtotaxfree.com/

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

We're unpacking a novel concept today: refinancing your retirement. Amidst soaring interest rates similar to those of the early 2000s, we explore why now might be the golden hour to lock in these rates for your retirement plans.

First, I break it down, highlighting how current high rates offer a rare chance to secure high-income payouts from annuities and their living benefits. We haven't seen an environment like this in about 15 years. This environment presents a unique opportunity to reassess where your money is parked and possibly guarantee income like never before.

Alex adds to the conversation, underlining the urgency of the situation. Thanks to these rates, he emphasizes the efficiency of buying more income with less money. Before rates drop, he points out the importance of acting now to maximize your investment's income potential. This strategy isn't just about immediate gains but also about long-term financial planning and making your money work smarter.

Who should consider this strategy? Pretty much everyone, from those in their 40s to those in their 70s. The idea is to reposition your assets to benefit from the current high-interest rates, ensuring a portion of your retirement is secured with these higher living benefits. This could potentially lead to a significantly more comfortable retirement, a retirement you've always dreamed of.

The conversation shifts to the current financial landscape, where $6 trillion sits in money market funds, earning around 5%. Alex points out the temporary nature of these earnings and the importance of being proactive in reallocating assets before rates fall. We recommend looking into bonds, dividend-paying stocks, and even real estate as potential areas for reallocating cash, emphasizing the importance of locking in rates now before they drop.

We also touch on the broader investment opportunities in 2024, including private equity and undervalued stocks, showcasing the diverse avenues for investment beyond traditional stocks and bonds. We share insights into Hosler Wealth Management's approach to retirement planning, emphasizing the importance of dynamic financial planning and the innovative financial instruments available today that differ significantly from the past.

It's essential to have a flexible, dynamic retirement plan that adapts to changing financial landscapes. We encourage listeners to keep an open mind about retirement planning and highlight the diverse tools and strategies available to ensure a secure and enjoyable retirement.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler