Do You Have To Pay Local Taxes On Retirement Income?

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Hi there, Stan the Annuity Man, America's annuity agent, licensed in all 50 states and

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Puerto Rico. How about that? Everybody in my office in Las Vegas, big palatial new office,

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they're also licensed in all 50 states, but they're not on commission. I am the pioneer

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of what I call Contractual Guarantees Only, CGO, and that's how we look at annuities, only looking

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at the contractual guarantees only of the policy. Today's question is a weird one, which is do you

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have to pay local taxes on annuities, you know, distributions from annuities. Gosh, the tax

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question keeps coming up, and I'm going to address it, but it doesn't live in my head rent-free,

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and I do not want it to live in your head rent-free. We'll talk about it after this.

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So, paying local taxes on annuities— when I read the topic and you know, I have smart people

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around me that choose the topics and think they're timely and think that Stan the Annuity Man needs

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to weigh in. I'm not, like, writing these down. These are topics that come up, and people want to

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know about it. First thing I thought about was New York City. Like, the answer is, to the broader

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question, is no, you don't have to pay local taxes. You know, there are some state taxes,

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and obviously federal taxes at ordinary income levels. But I'm thinking to myself, you know,

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if this question gets popular, you're going to have some mayors and governors think,

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well, yeah, you know, we probably should charge taxes on those rich people that have annuities.

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And I'm not political. I could care less about either party. I'm contractual. So there's a

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difference. I should run Dr. V behind the camera— I should run for office under the contractual party.

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Contractual Guarantees Only. And then say, "Hey, you already love, you know, the best contractually

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guaranteed annuity on the planet, Social Security, because it adjusts for inflation."

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But what I want to talk about is just taxes in general and annuities. You know, first of all,

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do not take any tax advice from anyone other than a CPA or a tax lawyer, or if there's a

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registered investment advisor that has gone through some classes and gotten certification

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as a CPA or a CFA or something like that, or a CFP to give tax advice. In other words,

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they have to be qualified to give tax advice. Okay? Johnny Appleseed agent down the street

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doesn't give tax advice. Even moi, top agent in the country, doesn't give tax advice. I can give

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you a 30,000-foot view and then point you to that. But in this case, you know, you might want to

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check with your CPA and see if, you know, that big city has some kind of rich annuity

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clause in there. I think it's funny that I think that's going to happen eventually because we're 39

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trillion in debt. There's not enough people to confiscate the money from. They're going to

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try, and it might be you, and it might be me, but there's not a bunch of us that has done it right,

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scrimped and saved, put money away, threaded the needle, and then here we are. And then all of a

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sudden you have people saying that's not fair. I heard one the other day that was crazy

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on this subject. I'm not a huge fan of Roth IRAs, but if you have paid the upfront taxes to qualify

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yourself for a Roth IRA, great. But then I heard someone else— it was a politician— say, "It's not

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fair people have Roth IRAs." I'm going, "Oh my gosh, talk about leaving a part of the sentence

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out. Not fair that they paid all the upfront taxes to get it to be a Roth? Not fair that there's a

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break-even point that they've got to reach for all those taxes that were paid to make it a Roth

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to make sense?" No. This politician is like, well, that's just not fair. That's where we're headed.

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Okay? So this question, in a broader sense, needs to be addressed as, okay, we're going

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to have to follow the rules with taxes, okay? Which we always do, and we always tell people

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to do. And you're going to do that with your CPA, tax lawyer, or, you know, CFP that has a tax—

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you know, has something in their certification where they can talk to you about taxes. The point is,

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I don't think there's a safe place to hide. I really don't. When politicians are talking

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about Roth IRAs not being fair, you've already paid the upfront taxes, okay? But are they going

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to maybe change it or means-test it? Wouldn't surprise me. I hope that everyone that has

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it is grandfathered in. But I'd be careful out there. We're 39 trillion in debt and counting.

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And some people— that's the building in New York— if you walk by and you're

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drinking your cup of coffee and you see the debt compounding, that's a sobering thing,

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man. I'm telling you, that's tough. But local taxes on annuities, no. But yeah,

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you're going to pay taxes sometimes on the state level, definitely on the federal level,

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depending on your state. But again, tax questions are for tax-qualified advisors— CPAs, tax lawyers,

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CFPs. Okay? Go to them. Ask them that question. But with annuities, don't be leading with, "Oh,

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is this taxable?" No, be leading with what am I trying to solve for— the two questions:

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What do you want the money to contractually do? When do you want those contractual guarantees to

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start? And then from those two questions, interact with us. Go to my site at theannuityman.com,

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schedule a free consultation. Email me personally, [email protected], and we will guide you to

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where you need to be. Or we'll say you don't need an annuity. It doesn't work for you. Or

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we'll work in conjunction with your, you know, your CFP, your CPA, your tax lawyer to make sure

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that you're dotting every i and crossing every t. But what I don't want you to do is live with the

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IRS and taxes in the back of your head. Don't have your life dictated by tax law. Have your

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life dictated by your lifestyle and the income floor, maybe using annuities that put that in

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place so you can go live your life. Because remember, we're all going to end up at the

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same place— drooling on ourselves and crapping our pants. I mean, I'm not going to tiptoe

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around that. And don't say, "Well, that depends." Exactly. That's what you'll be wearing— Depends.

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Alright? I think I blew up the guy behind the camera, Dr. V. Actually,

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that came up in a conversation. The guy's like, "Well, that depends, Stan." I'm like,

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"You're exactly right. That is the leading brand of diapers that you're going to wear." Enjoy

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the money now. It's not about taxes. It's about you. It's not about the IRS. It's about Chapter

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2. Otherwise, it's about poo. Man, that's just rap heaven right there. That's what I'm talking about.

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Hey, do me a favor. Above me, and I'm pointing to the sky. I'm right there. See it? Clock's

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ticking. There's a video on lifetime income and how it's priced and the reason that I think it's

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a bargain right now. And I really declared this year as the year of lifetime income because you

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need to lock it in. If you're thinking about it, lock it in now because artificial intelligence is

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going to change the game and lengthen out life expectancies and lower the payments. Lock it in

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now. Watch that video. Go to my site. Hope to hear from you soon. My name is Stan the Annuity Man.

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See you next time.