How To Lower Taxable Income In Retirement

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So, How Do You Lower Taxes and Taxable Income in Retirement?

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

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Puerto Rico, pioneer of contractual guarantees only. And I am looking forward to talking about

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this subject and taking it from a couple of angles, one that you might not be ready for,

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but I'm confident that you will accept it. Accept the facts, right? After this.

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So, how to lower taxable income in retirement? That's the question of the day. That's the

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focus. That's the goal. And my question is why? My question is, why are you fixated on that? Why

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is the IRS living in your head rent-free? Why are you obsessed with that? Now, obviously,

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we all want to pay as little taxes as humanly possible but yet remain legal,

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and that's so we don't get in trouble. But what I would encourage you to do is to,

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you know, speak with your CPA and tax lawyer. You know, advisors should not be giving tax

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advice. Only people who are qualified, CPAs and tax lawyers, should do that, my opinion.

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But there are some things that you can do to lower your income in retirement or taxes on the income

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in retirement if that's your goal in life. I don't want it to be your goal in life. I'd want the goal

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in life to be to enjoy your money. But, you know, if you want to buy tax-free municipal bonds,

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I'm not serious, I'm not one of these, I'm not an advisor in that side, I used to be with

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Morgan Stanley, Dean Witter, PaineWebber, UBS, and used to manage municipal bonds.

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That's a tax-free coupon out there. I mean, you can do that.

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Great story when I was with Morgan Stanley, it was kind of during the dot-com era.

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And so everybody was buying these companies, and there was nothing behind them,

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and companies were going up in value, etc. But coming from poor America,

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I'm looking at tax-free municipal bonds, and at the time, you're going to love this,

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they were 6% tax-free. Tax-free at 6% for 30 years. AAA-rated, insured. Okay? So,

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you're saying, "Well, my gosh, you probably sold a quad trillion of that." I sold a lot, but a lot

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of people would not touch it because they thought they could do better than 6%. Think about that

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now. If someone approached you and said you can buy a 6% AAA municipal bond and it's locked in

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for 30 years, would you take it? You darn right you would take it because the effective yield

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is 9–10% depending on your tax bracket. But the point is, that's a way to do it:

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tax-free municipal bonds. Go to your advisor, fee-based planner, and see if they can get

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that inventory. A lot of the times right now, the hedge funds and the private equity groups are

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buying that up hook, line, and sinker, whereas in the past, us commoners used to be able to buy it.

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Another way to kind of lower your taxes, your taxable income in retirement is

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if you already have a Roth IRA, you can buy a lifetime income product inside of that called,

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like, an immediate annuity or deferred income annuity, income rider for lifetime income. And

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because you've already paid the upfront taxes on that, okay, that's going to be a tax-free lifetime

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income stream unless they change the rules. I throw that in just because I don't trust the

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government not to change the rules on Roth IRAs. My hope is that people that already have them will

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be grandfathered in to the rules that are already in place. But I do not trust the government not

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to change the rules because there's 37 to 39 trillion in debt, and they got to find

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the money somewhere, and there's not many people that have the money, and you're one of them. Okay?

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So, those are like two of the primary places for tax — you know, how to lower

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your taxes on your income in retirement. You can do a myriad of those things,

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okay? And there's a lot of strategies. If you want to email me kind of your ideas,

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I'll help you one-on-one: [email protected], [email protected] — until there's 5,000 of

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you emailing me, then I have to get my team involved. But I oversee all cases,

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so it doesn't matter. I'm going to see your case and be involved in it.

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But I want to pivot away from the nuts and bolts of how to do it because there's some ways to do it

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using non-IRA money. You can buy an immediate annuity, and part of it. Part of the income

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stream, is not taxable. That's a way to do it. If you go to my site, theannuityman.com,

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and run quotes with non-IRA money, you'll see some tax advantages. But remember,

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all the IRA money, all the stuff that's been deferring — 403(b), 401(k), 457, SEP IRAs, SIMPLE IRAs,

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etc.— when you take money out of that, that's coming out at ordinary income levels, okay?

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So there's not a lot that the IRS has given you to lower things,

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and anything that people approach you with that sounds too good to be true,

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it is. I'll give you an example. There's a lot of life insurance people out there that say,

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"Well, you can get tax-free income from life insurance." Actually, you cannot. What

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they're talking about is a loan. That is a loan coming from the policy. All loans are tax-free.

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Now, I'll give you a great story. Guy called me up, and I had said this in a previous video

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just to warn people about that sales pitch. And he goes, "I don't believe you." I said,

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"Okay. Okay, great." So I said, "Okay, so you go to the bank and you take a loan out

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from the bank. So that money is coming to you. Is that tax-free?" And he goes, "No,

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because I got to pay interest on that loan." Okay. If you take a loan from a life insurance

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company and it comes to you, is that tax-free? And he's like, "Yeah." No, it's a loan. It's the

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same thing. It's a loan. A loan. All loans. All loans. Hello. Listen. Come here. All loans

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are tax-free. Okay? Why? Because it's a loan. Okay? That doesn't mean it's income. It's a loan.

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But what I want you to do is stop looking for the perfect product. Because I always say someone will

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say they have it and try to sell it to you. It doesn't exist. What I'd rather you do is focus

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on your life. What I'd rather you do is look at your income floor, everything that's coming into

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your bank account, add it up, and if there's a gap to fill, then that's when you call me.

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"Hey, Stan, we need 6,500 a month. We're only at, you know, 6,000." Alright, so,

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we got to fill a $500 gap. We do a reverse engineer quote at my site at theannuityman.com,

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or you can have us do it for you, solving for that, and then you're going to go live your life.

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I'd rather you do that than kill yourself trying to figure out how to beat the IRS,

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because spoiler alert — you cannot. You cannot because I know you're not going to believe this,

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but the IRS has people at the IRS that sit around and try to think like you're thinking, try to

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think like, well, they're going to try to do this loophole. Let's close that loophole. They do that.

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One of my team — I played college basketball — one of my teammates in college was a 6'9", 270-lb whopper

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of a dude. Okay? And he was mean and nasty and chewed with his mouth open. He was disgusting.

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I'm not kidding you. I mean, he's that guy. Like, play a game and just put his

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clothes on and walk back to the dorm. Like, take a shower, player. Okay? He's that guy.

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He's one of the big wigs in the IRS now. And that's true. And I'm telling you,

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I know he's probably watching this going, "I'm gonna audit that. I'm gonna audit

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him. I'm telling you right now, son." Because he was from North Carolina. Actually,

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he's a good guy. But he's in the IRS and he doesn't play. I've talked to him before,

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and he's like, "Oh no, we're looking for those loopholes. You're looking. They are looking."

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So, which leads me back to live your life. Use us for that lifetime income stream or

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principle protection that will get you to where you want to be. But don't live your

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life trying to beat the IRS because you're going to run into my 6'9" whopper roommate,

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and he's no fun. I'm going to tell you that right now.

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Do me a favor. Click this link above me — it's counting down. There's a video

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I did on contractual guarantees only. I'm the pioneer of contractual guarantees only. You know,

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that's all we do. That's all we recommend are contractual guarantees. You own an annuity for

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what it will do, not what it might do. Not hypotheticals and theoreticals and

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projections and bonuses and unicorns chasing the butterfly. You own it for what it will do,

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and those are the contractual guarantees. And that video explains why that's important.

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Okay? See you next time.