What is the logic behind limiting contributions to an IRA or 401k?
Channel: Chris Grande
Date: 2019-05-31

This Quora question floated across my notifications so I answered it here:
https://qr.ae/TWGHHv
Because I thought it was a good example of advanced retirement income planning. When planning for retirement income, you have to factor in future income vs the taxes, surcharges, loss of deductions and other problems that having a higher income could entail.

And with the direction our tax code is taking - clipping small parts of the population at a time so no large group complains - will continue. So they will get rid of social security maximization techniques this year, and then increase the threshold for medical deductions next year. Then they will increase the Medicare surcharges and who knows what else. 

So understand that this is a method of advanced planning as you look out over each year in retirement to maximize what you take home and minimize taxes.

If you'd like advanced planning and this level of detail in your retirement income strategy, consider working with us and see if we are a good client/advisor match. Go to my intake form here:
https://www.planwithchris.com/planwithchris


Links referenced in this video:
https://www.investmentnews.com/article/20181120/FREE/181129997/medicare-high-income-surcharges-to-increase-in-2019
https://turbotax.intuit.com/tax-tips/health-care/can-i-claim-medical-expenses-on-my-taxes/L1htkVqq9
https://smartasset.com/retirement/is-social-security-income-taxable
https://chrisgrande.com/2018/06/26/chris-update-personal-vc-fund/
https://turbotax.intuit.com/tax-tips/small-business-taxes/how-an-s-corp-can-reduce-your-self-employment-taxes/L4abUcaRn

Thanks for watching.
Remember to 80/20 Your Money (and your entire life!)

Warmly,

Chris Grande, MSIM, CFP®, RMA®
Now the Bicoastal Advisor! 
https://chrisgrande.com/
Interested in working together?
https://www.planwithchris.com/planwithchris


Note:

My articles and videos are meant to be educational and not specific advice. I assume my readers are big boys/girls and understand that, but in today’s climate I have to tell everyone again anyways – people might do something dumb and go hurt themselves! (like stick a fork in an electric socket or something – don’t do that!). Consult a qualified advisor before attempting financial strategies that you don't fully understand.