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Standard Deductions

Finishing Well / Hans Scheil
The Truth Network Radio
September 4, 2021 8:30 am

Standard Deductions

Finishing Well / Hans Scheil

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September 4, 2021 8:30 am

This week, we're talking the seventh worry, standard deductions on income taxes.

Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on CardinalGuide.com for free!

 

You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com.  Find us on YouTube: Cardinal Advisors.

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Hi this Roy Jones with man talk radio podcast are missing is to break down the walls of race and nomination your chosen truth radio broadcast will be starting in just a few seconds. Thank you. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner long shy best-selling author and financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started with finishing well, finishing well is a general discussion and education issues facing retirees guide.com are no advisors on trial CFP some insurance this show does not offer investment products or investment advice on work well with certified financial planner Hans Schild today show.

We are talking standard deduction which you know are talking taxes. Here is the standard deduction, but you may think cluster standard, but as we have discovered in so many things we eat it you know it takes counseling so as I was thinking about this.

My good friend Hans and I were talking about is her certified financial planner that in the 13th Psalm King David starts off by saying how long will you forgive me Lord forever. And then he said something very interesting is his but that was interesting, but this is particular interesting of this subject today is how long will I take counsel in my soul. Having sorrows in my heart daily. In other words, what King David is saying here is God I need your counsel, but even more, you know, I need your counsel when it when it comes to the things that are described as far as my salvation, but it also speaks to how often do we need counsel for things we think we understand and and and just as I watched. Actually your video Hans on the standard deduction. I immediately saw wow I didn't know what that that inhabited the standard deduction for people my age 65 is more than for people that are younger you begin to live of my close one of the married filing jointly standard deduction 25,188 yet to encounter one income you get down your back.

You turn $25,100 deduction strata without even listing an item now five and over. They had 1350 but the number over 65, 26,100 because you know I want people to get this is the tax cuts a job that 2018 now living in the fourth year tax year.

The back of you no longer need itemized deduction unless they're over that now now for a single person that numbers $12,550 like my 23-year-old son started his first job out of college. I got them all started out in a Roth IRA beyond snow is terrible. Using down 12,550 bucks on his back tax-free income that the so now somebody was 65 and over, and they get an extra $1750 for the numbers $14,250 deduction. To put that down and down 100 on a task related unit test. Giving NAI because now it has a big house payment. Big mortgage payment to get me state income taxes. They got their pain malarkey, and their pay property taxes. They can be more than $10,000 Kelly and then making a lot of money in the church and terrible.

Obviously, people with very high incomes or Irish income they're gonna take more than the 26,150 25,100. What I'm really looking after people will start planning in retirement.

We want to know how much income can we have beside Social Security not pay any cash because when you pay no taxes in retirement are very low taxes that mean you get to keep all your money and their you don't really have to save money in retirement. So when you add to social security check and you know a couple thousand dollars a month withdrawal from your IRA. Eventually you got pretty good levels of tax-free income that you live up I said that's the relevancy like you may think. Why is the standard deduction. Some I need to consider that you know clearly, especially for people that are living in retirement and assistance you may be your parents or something like that for listing those people that that you know their primary source of income is there Social Security, which is not taxable than wow with that big huge standard deduction which they give you when you're 65 or over. Then, you know, this gives you the opportunity to get some of that money right out of your IRA and not pay tax on a number of people out there living. They have money in an IRA or understudy to their taking nothing out.

I don't need it living up with a purity doing a good thing they don't think that nothing out of Oregon over 72. They just take a minimum patient which doesn't have all and then they'd leave the resident management rolling over in their unaware that they could be taken 26,000 out of their IRA 25,000 single person 14,000 creating the income to take advantage of the standard income tax rate quoted in the bank word now over on the side garage pay tax on the money.

So people are not really planning around, not even thinking about. I want raise awareness because every person that we do a financial plan yet yet many people we do financial planning have incomes of 5060 7080 $90,000 out of their savings. Social Security and so were helping him juggle all these things proactively or prospectively as opposed to looking backward doing taxes or what are Were sitting down and looking at as well get a standard deduction of this amount be put onto their own taxes. Most of you. I mean, you have quite a story there about what your clients. It's just continues to keep her records are not very neat and tidy in their all in a place in a black and you drink holy know I'm going over there, and making, and of all of them related. Her husband died years ago with Morgan but in any case, CM and CPA together taxes but she stood given these things to me every year all medical bill received all prescription drug all her charitable deduction. All her little bit here little bit there tax bill for property yet because Maulana report $5000 mode and she standard deduction of 14,250 I try to tell us server a few years ago in the middle of the process of hiring a CPA, I quit at the ready to go out there during college he sent that are garage and I get to close on and I will is actually two years and then I can make it happen. You know I go make copies of the all and and I think I sent them to the CPA five dominates the absolute end, I tell you need all the tell her that I sent her and I take the box back again not an you know that I have to do every year I have to go to her. Take the difference out the standard deduction out of her IRA.

Just make sure that she has the income tax deduction that make that out.

How absolutely and as far as starting to take the distributions right this. This even affects people in their 60s right behind you and your you're not paying the 10% penalty for early withdrawal from your IRA and then you get to be 6263 or 65 and you get ready to retire retired and started to check the so security income doesn't enter into the standard deduction so violent that her merry couple and then live people, the know how much tax of any at all, and got money for an IRA and it is not weeks take something out of that. My advice is probably take more than the 25 now you know the first initial tax bracket is 10%. So you know once you get over the 20,000 of income or 25,000 standard deduction and 10% tax on that not all bad. Even if you just redeposited, or you can convert some of your IRA and your showing the income on your tax return advantage of the deduction of the money over there that's available to you or your air tax-free while you can see this is a topic that's worth discussing because we affects really hollowness so working to be right back to my condo guide.com personal advisor so will be right back with more on the standard deduction. Hans and I would love to take our show on the road to your church and Sunday school Christian or civic room. There's a chance for you to advance the kingdom through financial resources and leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to car Common contact time to schedule a live recording of finishing well, your church, Sunday school civic contact time that Cardinal guide.com that's Cardinal guide.com welcome back to finishing well, a certified financial planner homicidal in our show today is the standard deduction and getting some counselors is a wonderful thing, especially when we think we know which is King David will tell you, you made up of sorrows in your heart daily so in one of the places that that counsel is available is in constant book the complete Cardinal guide to planning for and living in retirement, which is we always mention is there Cardinal guide.com because he just email Hans that Cardinal guide and tell them you want the book and inside of that book right there are seven different tabs are seven different sections based on what most people consider the seven trees which the purpose of the book is actually that you wouldn't worry so that you could enjoy your retirement in one of those is is is certainly the idea of taxes and tax planning.

And that's what's relevant to us today right hunt. What we thought about what really am worried last last chapter because I don't like to start with plan to do financial first thing anybody want to talk about Laura very that causes one to make worried that I cannot talk about them all along. The last chapter more talk about today.

I was standard deduction which used to be a small amount out of fairly large output in their new tax code very well unless you have this much induction you have to track down your phone so we can talk about, but I wrote the book. Initially, just because I think what we do in financial planning is fairly unique.

Not too many financial planners like me to talk about Medicare long-term care, social security and all those things much investment people talking about your retirement income investing your money.

You want to do and what I specialize in all of these areas.

So I really came up with seven categories seven worry seven chapter 7 section. Just like in categorizing I can explain to people like what I do so that people out there could read about what I do. They could share with their friends vigorously while I've met this guy and he did this for that pretty hard for people share what we do to help.

When a friend but my thinking in the beginning but what I realized it really lay things out nicely for me that I can talk about this almost an hour while one of those is your show every seven weeks about your next Medicare. Explain Morgan talk about long-term care and IRAs. Typically the money and pay taxes on talk about retirement income and investment next May planning and life insurance and last but not least, that is easy for me than without notice. People and then individually help client we want talk about how the seven things apply to you and what your preferences are and what your goals are, really, how you want your life in retirement. I will order your money order things and make decision to make you like one point of clarity in their tests. The word retirement always conference some in my gullet.

I don't know exactly, but because it doesn't apply to me from the word itself because I have no intention whatsoever retirement I did. I do have every intention of finishing well which is why we name the show that because it it has to do with the change in the way that you handle your financial all the seven categories are completely relevant to me because of sadness.

I turned 65 on the said Medicare becomes part of my life so security certainly decision that will be making from the portraiture, 62, or whatever clear until the age that your 70 and the tax laws and tax differences in all those things you know that we talked about life insurance and all those really are different for anybody. As they make this change.

You know is you getting to the stage of lifelike comps we are delaying retirement may only make for try my best to work with them at 70 no. 80 borders allow me to stick around, but I had delayed the decision of like how I'm going care for retirement how things are and work actually. Check at 70 weather near the church. Nothing else with my drinking.

It is a plan of attack and you know that I really think about things may not work exactly the or may have a different plan.my wife live on. Take error and so you got all these contingency plan for I may get. I may work a long time but I may be doing some better stable.

That case I would want to make sure that everything and everybody around me best he can be here in a way I want to get care so this retirement planning is not something that can be put off. It just because you are working, you haven't done that. Personally, I have rented it. We'd leave a lot of new client coming in their in their 70s and I do not get a lecture from the like-minded. Believe me, you won't get that even getting apply.

People never consult somebody like me they see things as they happen and you know that he fainted and fell outwardly with settlement and that the dental so the whole idea. Retirement planning. Probably best to start repairing 40 or 50 thinking about it and maybe find a consultant meet early 60s, mid 60s is when most of the people are coming in and beyond their just understand that if you're in your 70s and you really haven't gone through the seven thank you have a plan that is probably not a bad idea to get into near somebody like you will advise again that is in my case, which I hope to never attack scallops as I reached the age of 70. Like you said so security is coming when he wanted to not to do on it on the diverter that I'm sure I'll find a place for that, but then also you know obviously if you got IRAs and Roth IRAs. All these things change and in really some really cool things happened as as a result of of that. That really are beautiful like you know if you're my age age of 65 and you're still working on a Roth IRA works really, really good because a meeting was put money in there and and and make the and make the income but those things I learned only as a result of having done the shows with you Hans and and reading the book. Retirement planning is really about your even night was really good will of the family and my sexy but you could not do retirement planning promoted people and just cannot pay things as a comical things as they come.

Taxes are due.

Do you minimum distribution to be fine all the way through your 60 problem comes in is a given year, 89 or want you to now we start running into the negative ramifications of knowing he didn't plan for an early demise of one of you and the survival of the other that really matters in the 80s and 90s, when you want. You plan for long-term care happening to you and your agent night you got it so so much of this whole process is really about the eight I began understanding that you succeed in your 75 retirement elegantly. I don't plan and they are still in your errors and your spouse and all those things that that that segment of the equation and even as a timeout today.

The standard deduction is is part of right. I guess creating a runway so that the landing comes in without so many taxes away make up about half income planning standpoint and attack the older ages. We project all the stuff out and we don't know we we try to make decisions now prepare for future you can be smart about and prepare so is as we get back to that that concept, looking at a standard deduction so people from 59 1/2 on Upton right. We can write you your whole life, you're getting it now we have a working income.

Yet if your income is more than that. You don't really need to do a lot of explaining the becomes in his once you start getting your Social Security you have a low tax or possibly even a no tax situation. Your income coming in part what you live in a band. If you have retirement savings which many people do you a natural source of income. You're in control of the withdrawal allow folks like you can take any money out of that for later in appertaining. I'm also 40 and you are for a while but you're also do not call anything out of that IRA or 401(k) until you have to your you're wasting away years of standard inductively coupled money out of their mothers all sorts of wonderful things that you can do even like you made mention of the two CDs in the last 2021 over one of the point of your 2021 ask about if you are married couple. You're over 65, 26,450 has a 365 day shall actually your 20, 21, one has right now when his radio show planning about three months and felt like okay if you don't use it if you don't show income of that amount by January 1, 2022 weight nonbiased oil you have another one start date years ago.

As the years go by. The other plate that you just mentioned is the Q CD there is a way to donate money to which this church or any other qualified charity directly from your IRA avoid taxation wantonly doing that told me I could do that. I wanted a whole lot of rules all around that. So if you're using a standard deduction to lower income taxes then we also don't want to cut back on that were given to the church. We want to give more we can do that if you're over age 70 1/2 you seek one know more about you all listen to podcast on previous tasks which you can sign all that Cardinal guy.com as well as conscious focus. We talked about the complete carnal guide to planning for and living in retirement.

It's all available there@cardinalguy.com a great show. Hans, thank you so much thank you finishing well is a general discussion and education of the issues facing retirees Cardinal guy.com Cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care and life insurance, investments and taxes as well as cons best-selling book the complete carnal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows when you get Hans book of the Cardinal guy.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word again that's Cardinal guy.com Cardinal guy.com.

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