What States Do Not Tax Retirement Income And Social Security?

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So, what states do not tax retirement income and Social Security? Pretty good question.

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I guess you're moving, right? A lot of you are.

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I'll give you the broad stroke of that. Did a little research on that. But, you know, to

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give the specific states, there's a lot of those states. We'll go over that and the details of

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that and what I believe that question really means and what you should be thinking about after this.

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So the answer is 13 states currently do not tax retirement income. You can send me an email,

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[email protected]. I'll send you those 13. And over 40 do not tax Social Security.

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But I think both of those are kind of loaded. I mean, those are static answers. There's a lot more

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ways, as you know, that the government is going to come at you to get your money if you've worked

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hard, done it the right way, scrimped and saved, done without, and now you have this huge nest egg.

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You know, I do matriculate towards states that do not have state taxes. You know,

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I live most of my days in Florida. Our office, which is where I'm there one to

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two weeks every month, that's in Nevada. Those are two states that are pretty tax-friendly.

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But there's nowhere to hide.

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And I think going forward in this country, there's a lot more people

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that don't have anything compared to a lot of people that have some things and have money.

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There's no political comment to that. I'm contractual. I'm not Republican or Democrat.

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Things happen. I mean, twists of fate happen. Work hard, majored in the right thing,

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illness, sickness, family, whatever, might have you in the situation that you're in.

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I always say the best business model to be in is the inheritance business. I mean,

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my two daughters, great business model. They're going to get it all.

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I've worked hard for it. My wife has put up with me,

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so she's worked hard for it. She's half owner of this business, and it's a big one. We're the top

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agents in the country for fixed annuities, licensed in all 50 states and Puerto Rico.

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Okay? But I keep saying this. I said this a lot. I did this on a video recently,

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just a little smidge of it, and I got hammered with people's comments. And I said, you know,

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don't let the IRS live in your head for free.

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And the comment was, “Well, it sounds like they're living in your head for free.”

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No, they're not. Personally, they're not. I'm trying to help my clients

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and the quadrillion of clients and people out there that listen to me and follow me to say,

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“Hey, there's all kinds of things. There's IRMAA.”

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We're not going to go into IRMAA right now, which is a whole

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made-up way to tax you, and people are all concerned about coming over or under certain

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thresholds so they won't get taxed. That's just the IRS living in your head for free.

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You know, I'm not a big proponent of Roth conversions. If you have it,

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great. I think you're grandfathered in. That's great. But I want you to

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run the math numbers before you do it because you're paying a lot of upfront

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taxes for the hope that the government doesn't pull the rug out from under you.

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A long time ago, you know, there were politicians that stood up and said,

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“We're not going to tax Social Security. We're not going to do it.” I mean,

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come on now. I mean, I didn't say 50. I mean, they have figured it out.

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And some states are taxing more than others. And I do think that in the

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future there will be a flight, there will be tax-friendly states, maybe tax-free states.

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I think you're seeing that now with some the flight of people from New York to, say,

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Florida or Tennessee, which has no taxes, or people going from California to Nevada.

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Same thing. You cannot aggressively tax people and not expect them to do something about it.

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Okay? Now let's talk about annuities and how they can address this taxation issue.

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I think one of the more unique products out there is MYGAs,

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multi-year guarantee annuities, which is the annuity industry version of a CD.

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If you go to my site, you'll see a live feed of what's available in your state,

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but you can use non-IRA, non-qualified, checking account-type money. Buy a MYGA,

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and the interest grows and compounds tax-deferred.

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Can you take interest out with most of them? You can. But a lot of people

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just want to lock and load, just let it compound and let it roll and just keep

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rolling those MYGAs in perpetuity. And you can do that, and that's a way to lower your taxes.

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Also, too, with immediate annuities, if you're using non-IRA, non-qualified,

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checking account-type money, the income coming to you is a combination return of

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principal plus interest. So you're only paying a portion of the taxes on that interest portion.

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In the business, they call it the exclusion ratio, which means, in essence, in English,

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a large part of that lifetime income, because it's principal, is excluded from taxes.

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Qualified longevity annuity contracts can be used inside of IRAs. They're called QLACs,

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traditional IRAs, so that the amount in that QLAC is not used

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to calculate your required minimum distributions when you turn that age.

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I mean, there's some tax benefits using annuities, but are you going to—

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people call me all the time,

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“Well, I don't want to pay— I mean, I just really don't want to pay taxes.”

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Well, there's a lot of charlatan idiots out there that will tell you that they have it.

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One of the ones that drives me crazy is they say,

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“Buy this life insurance product and you can get lifetime income tax-free.”

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No, that's a loan. That's a loan. That's not income.

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When you go to the bank and get a loan, that's not income. That's a loan. When

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you buy a life insurance policy and get a loan, that's not income. That's a loan.

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But I love the semantics, the word games that agents and advisers play

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because it's like the reason the supplement industry is so big.

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“I've got this pill, and if you take it, you're going to have six-pack abs within seven days.”

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Well, you're going to sell a lot of those pills. Now,

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you're not going to get a lot of reorders, but initially you're going to sell a lot of pills.

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Now, in the life insurance sale, they don't care about reorders. They've made their money on you,

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and you've bought the dream. You're the sucker.

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But there's no way to get around it.

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AAA municipal bonds back in the day when I was with Morgan Stanley

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managed those tax-free income, but they're hard to find now.

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My comment to you is live your life.

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There's three phases of retirement: a go-go, slow-go, and no-go.

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And we know what that is.

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Go-go is probably right now. You're feeling pretty good. You can do things. You can travel. Do it.

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Slow-go, you know, you've got one or two bars beside the toilet to

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get you down slowly, right? Nod your head.

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And then no-go, you're drooling on yourself and crapping your pants. That's it.

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It's time to live your life. It's time to fly first class before your kids will.

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Annuities can create that income floor in combination with Social Security, a pension if

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you're so fortunate, dividend stocks, side hustle, rental homes, whatever, so that money coming in

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every single month is not affected by wars or by Republicans versus Democrats. Who cares?

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In chapter 2 of your life, you cannot care about that. You've got to focus on what you're doing.

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A lot of what I'm doing now with my videos,

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I'm kind of Stan the Motivator. Tony Robbins with contractual guarantees.

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But I got some good Tony Robbins stories. One of these days I'll tell them, but I used to

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use a studio that he used in Las Vegas, and all I can tell you is that he required the

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studio to be 58 degrees or he would just do a full sweat. He'd sweat through his clothes.

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He has some glandular thing. He's like 6'9" or something. I'm 6'6",

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but I walked in there one day after he shot, and I'm like, “What are we doing?”

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You could see your breath almost. Just like, “No, this is crazy.”

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But Tony Robbins is live your life and live it better. I've got a way to do it

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contractually and put that foundation in place so that you can go live your life.

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And we can structure it so that the kids will be taken care of

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if something happens to you. We can do that.

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I would encourage you to go to my site at theannuityman.com, download the books,

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run the quotes. You can contact me direct, [email protected].

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Currently, I get, I don't know, 300 to 400 emails a day, but I'll get to you. I don't have a life.

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Been married 37 years, you know, 62 years old at the time of this taping, but I love what I do.

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I don't need to do it, but I love what I do because we're squashing

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all of those bad sales pitches out there. We're stripping this

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down to what annuities should be, which is contractual guarantees.

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You own them for what they will do, not what they might do.

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One last thing. Spinning above my head is a video that I just did on lifetime

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income and how artificial intelligence will affect it. Not might, not should,

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not maybe— will. The only question is the timing.

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But as we know with artificial intelligence, it's moving quicker than we all believe.

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So, that's worth watching because if you're looking for lifetime income,

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right now is a good time to look at it because I think the life expectancy tables are a bargain.

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Alright? My name is Stan The Annuity Man. See you next time.