Tax Bucket Explainer Page

The goal of this very special page is to 1) educate you on what might happen with tax rates in the future, 2) explain how that might affect your retirement savings, and 3) to offer some suggestions for keeping Uncle Sam out of your pocketbook! If you have time, watch all the videos.. If you are short on time, please watch the one immediately below titled - NOT Bozo's Buckets!

NOT Bozo's Buckets (4:06)

 

Every asset you own, every dollar you have resides in a series of financial buckets. These buckets determine future tax treatment and there is a mathematically ideal amount of money you should have in each bucket to maximize your ability to save taxes. This is the most important video on the page. 

The future of taxation and what to do (5:09)

 

I think we can all agree that paying less tax is a good thing - right? Unfortunately, many experts feel that tax rates are likely on the rise. According to the Federal Budget, in 2017 the 4 biggest line items took up 71 cents of every tax dollar taken into the Treasury. Leaving 29 cents for everything else.

 

Here in 2020, these same 4 expenses are expected to take up 92 cents of every dollar. Leaving all these agencies to fight over 8 measly cents. And that was before the Covid. There are options and I share them in this video.

Will the stimulus harm your retirement? (1:50)

 

Increased tax rates financed the spending that helped the U.S. get out of the Great Depression in the 1930s. The corporate income tax from 1929 to 1939 rose from 11% to 19%, capital gains tax rates went up from 12.5% to 22.5% and personal income tax rates jumped from 24% to 62%. The question is how will today's payments affect tomorrow's taxpayers? (Still us!)

Frequently asked questions - investing in life insurance to save money on taxes #1  (4:33)

  • Would you do this with your money?

  • Why would you do this?

  • What’s the catch?

  • What do you call this thing?

  • I have Whole Life Insurance, why would I need this?

  • Why should I pay for a death benefit, my children are grown. They don’t need my money.

  • How is the death benefit calculated?

  • How many years do I fund?

Frequently asked question about investing in life insurance to save money on taxes #2 (5:24)

  • Do I have to fund this policy every year?

  • What if I can’t continue funding?

  • Is this like a ROTH?

  • Are there costs?

  • Does it cost me to take money out?

  • How soon can I take distributions?

  • I’ve heard distributions referred to as a loan. Is it repaid?

  • Can you take money out for Long Term Care?

  • How does the cash value grow?

  • Can you lose cash value

 
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Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and Rose Advisory Group are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a monthly fee for assets under management while insurance products pay a commission, which may result in a conflict of interest regarding compensation. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by BCM.  Index or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.