This topic is extremely close to my heart, as my father-in-law has recently seen huge increases in the cost of his rent in assisted living, and he like many others may potentially outlive his money for the care he will need in the future. For Dad, retirement happened many years ago with the early onset of dementia. He is not in a position to go out and get a job to supplement his daily living expense needs. What about those who just simply wanted to enjoy some healthy retirement living after putting in years of hard work and making many sacrifices along the way? What’s the outlook for them?
According to a recent article by Daniella Genovese (FOXBusiness- https://www.foxbusiness.com/lifestyle/soaring-inflation-driving-retired-employees-back-workforce) many seniors who have gone into retirement are facing coming out of it and getting another job to provide for the basics. With the high price of just about everything, Americans are feeling the pinch and desperately trying to figure out how to make ends meet. No matter what side of the political fence you are on, I’m hearing from our senior community a sheer anger and lack of understanding of why our leadership is sending taxpayer money to foreign countries when we are in such dire straits here at home? The future seems bleak, and though I know some folks who are happy to be busy as a Walmart greeter, that’s not the case for those people who won’t be working for a pastime, but rather to keep eating and provide a roof over their family’s heads. Add to that many are physically not able to go back into the workforce.
If you’re one of the many seniors whose assets are depleting rapidly, there may be one asset that has been overlooked. An audit on your life insurance policy may provide you with an opportunity to recapture benefits available to you.
While the current status for so many is heartbreaking --and unless we see some radical improvements in our economy very soon, there doesn’t appear to be a great solution for our seniors who have retired. That said, there may be some solutions that would offer some better outcomes for providing tax free dollars in retirement income. I’ve spoken about this many times, and my company, as a ‘wealth resource consulting group,’ has the experts to guide families in making decisions to protect their elderly and preserve legacy while mitigating taxes.
I shared in my last blog post about the number of people who frequently ask me “why didn’t I ever hear about this before now?” and my response remains the same: we have not educated our public very well. Basic legal strategies written into the IRS code allow for many provisions on efficiently managing funds while paying the absolute minimum legal requirement in taxes to be in compliance with the tax laws. The problem is that not all tax professionals have learned these strategies, nor are they willing to add more to their list of required education credits to stay current and remain licensed.
The tax train is coming – the Trump 2018 Tax Reform Bill Sunset Clause ends December 31, 2025. The next day, taxes revert to pre-Trump tax brackets. We have 3 years roughly to get the heavy lifting completed and to protect people from losing millions in tax hikes. No one needs to lose money, but procrastination is not our friend. Take time to receive some free education. Reach out to schedule a short overview of changes that may make a huge impact in your loved one’s future, not to mention your own and that of your future generations.
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