Why Do You Have To Pay Taxes On Retirement Income?

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Why do you have to pay taxes on retirement income? Stan the Annuity Man,

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America's Annuity Agent, licensed in all 50 states in Puerto Rico. I don't know,

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but I think I got a good a good insight into that and kind of have a good insight into where this

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is all headed from a taxation standpoint. But I will kind of tell you this. IRS is our friend,

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right? Nod your head. No, not that nod. No, the other way. IRS is our friend.

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But we're going to talk about taxes on retirement income, annuities, etc. The structures that you

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can look at the details, the facts, 30 plus years of experience in this game after this.

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So why do you have to pay taxes on retirement income? It's because we have 37 trillion in debt

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in county. It's because we need roads and schools and bridges and military and all that stuff. It's

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because it's the law, you know. Now you're saying, "But wait a minute, Stan. I remember back in the day

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I heard a politician say, "Hey, never in my lifetime are we going to are we going to tax

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social security?" Well, that didn't work out so well. So, you know, Social Security is the best

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inflation annuity on the planet. You already own it. Uh I know you're saying, "Is that an annuity?"

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Yes, it's an annuity. It's political, not actuarial. By the way, someone asked me the other

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day, see, they said, Big C behind the camera, they said, "Are you political Stan the Annuity Man?

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America's annuity agent licensed all 50 states Puerto Rico." I said, "No, I'm contractual." Okay.

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I'm not political. I'm contractual. All right. So, cut. All right. Coming back. I'm back. Taxes on

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retirement income. I lost my train of thought because just the word taxes just it's like it

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like it's like one of those drones that comes over with electronic pulse a punk. You're like

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we're going to have to pay taxes. All I'm going to implore you to do is don't be obsessed with this.

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I mean I did a newsletter the other day and it said stop threading the needle. Stop looking

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at your statements. Start trying to spend money again. And I got an email back from a you know we

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have a huge email list. Somebody emailed back and said, "Piss off. I don't like your attitude." He

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literally said that. I'm like, "Okay, sorry." But too many people, and I'm probably talking to you

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out there, you're trying to thread the needle and trying to figure out how not to pay taxes.

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And you're going to pay taxes, okay? And even in today's current environment, you look at the tape

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uh the time of this taping, you might say, "Well, you know, in the future, I won't be,

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you know, creating income. It's not not going to work. I probably won't pay as much taxes."

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I don't know if if that's going to be true. I really don't. A lot of you are saying, "Well, this

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guy is going to have me. He's helping me convert all my IRAs to Roth IRA, so I won't have to pay any

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taxes." Wait a minute. You I mean, to convert to a Roth IRA, you have to pay a bunch of upfront taxes

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to make it a Roth IRA. So, might want to run that number to see what the break even point is. Okay.

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People say, "Well, Roth IRA's taxfree." You've already paid taxes, Chester. Of course. My hope

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is that the government doesn't pull the rug out from under you like they did with social security.

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Never going to be taxes on social security. I was at the table. I was at the I was at those meetings

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periphery when they were talking about Roth IRAs and I'm telling you, they're going to try to tax

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that. They're going to say, "Well, yeah, it's going to be taxree unless you're the evil rich

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or it's going to be taxree unless only if you use it for health care or saving the whales or

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something like that. 20% of the public right now has Roth IRAs the last time I looked it up." That's

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a big number, but it's not a big enough number for politicians to care about your vote. Okay? So,

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I'm not against Roth IRAs. If you want to do it, do it. I don't recommend them because I don't trust

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the government to pull the rug out from under you because they're, they've

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done it before. Okay? And they're they're going to forget the fact, in my opinion, my guess is

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that you've already paid upfront taxes. So taxes in retirement from annuities, when you take money

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out of an annuity for lifetime income, it's taxed at ordinary income levels. Okay? That's the

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current law. Now, if it's inside of a Roth IRA and you buy an immediate annuity inside of a Roth IRA,

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that's currently that's taxree. If you buy tax-free municipal bonds, if you can find them,

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that's taxree. There are some things that that are out there that you can get taxfree income or

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taxfree dividends in case coupons in case in the case of municipal bonds, of which I used to do

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when I was at Morgan Stanley, manage those. But my advice to you is don't get fixated with the

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IRS. Don't get don't try to beat them. You can't. I'd rather you figure out the income floor that

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you need and go live your life. Chapter 2 is about you. You know, that's where we can come in. If you

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figure out all the income that's coming in, you know, social security is a pension. RMDs when you

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turn that age is kind of like a pension because you got to take money out every year regardless

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whether you need it or not. If you have an actual pension, one of the 9% that has it,

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great. You know, whatever is hitting your bank account, rental income, whatever. If that's enough

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to live off of and live well, not scrimp and save, you've been scrimping and saving your whole life,

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then great, you don't need an annuity. But if you need to fill the gap or have a little bit

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extra to live better, then that's where an annuity can come into play. And you can go to my site at

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theannuityman.com and run a reverse engineer quote solving for a specific amount. People always say,

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"Well, I'm looking for an annuity that adjusts for inflation, Stan. That's what I'm looking for,

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son." I'm like, "Well, great. I'm looking for a world peace and harmony and both parties getting

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along. Okay, that's what I'm looking for. I've got a better chance of finding that than you finding

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the annuity that just for inflation. But if you ask enough agents, they'll tell you they have it.

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They don't have it. The way to solve for inflation with annuities is at the time you need that income

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gap to be filled. Give an example. Let's say you have $5,000 coming in three years from now,

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you need 5,500. Then we go by an immediate annu annuity solving for that $500 additional dollars

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that you need. Shopping all carriers for the highest contractual guarantee using the least

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amount of money. So we're solving for the $500 with the highest rated company that's using

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the least amount of money. That's how you solve for inflation. Anything else is a sales pitch.

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Anything else is a crap dart throw. Well, I've got it, son. Because if if the index increases,

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then you're then your this increases. Listen, annuity companies don't give anything away.

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There's no philanthropist annuity company. There's no there's nobody waking up in the morning at

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annuity companies going, "You know what? We're going to do it. We're going to do a proconsumer

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inflation annuity." No, doesn't happen. Okay. Anytime you have an increase contractual or

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potential with annuities, here's a visual. Here's the annu same annuity without it. That's above my

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head for people that are that are listening. And the one with the the increase, it's below

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my chest. They don't give it away. Typically, it's a seven to nine year break even point,

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but it's really dependent on your age. Most of the time, it doesn't make sense, even though you want

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it to happen. You already own the best inflation annuity on the planet. That's social security.

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That's because it's political, not actuarial. And yes, remember, I'm not political. I'm contractual.

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Okay? But the think about it. But the point is that got guarantees. Remember that. Got milk,

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you know, drink the thing. Got the milk mustache. Yeah. See behind the camera. We should do the milk

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mush with with this right here. Taxes. None of us like paying the taxes. None of us like it. But

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I encourage you not to try not to not pay them because things don't go well. Only the super

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uber rich can get away from with that. All the rest of us out here, we got to pay taxes. What

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I don't want you to do is have the IRS living in your head for free. I do not want that. I want

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you to live your life. I want you to enjoy your life. I want you to plan your income floor so that

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you're going to live the life you've worked hard to live. I was talking to another guy. I'll close

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with this. I was talking to a guy the other day. His name was Jamie. Really smart

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guy. Played played baseball in college and very successful businessman. And he said something. I

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said I'm going to put this in the video. So here it is. Jeremy. He said you know we really had

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to retrain ourselves how to spend money. He's so right. You know, for all of us that grew up poor,

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middle class, lower middle class, whatever, what whatever it is, you know, my father,

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great story was here's my scar from my past. We go to McDonald's as a kid and I walk up to my dad

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goes, "Get anything you want." And I I might have been nine years old, okay? And I said, "I want a

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large fry." My dad turns to me, he goes, "Large fry? We can't afford a large fry." To this day,

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it's hard for me to order a large fry, okay? I'm just saying. I mean, we all have those scars,

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but we have to learn how to spend money, okay? And don't let the IRS live in your head that you're

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going to have to pay them and go live your life. Pay them, go live your life. Pay them,

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go live your life. Do the best you can. Work with your CPA and tax lawyer. Do the best you can, but

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don't let them affect your life. Please. Please. You listen to me? Okay. Do me a favor. Above my

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head is a video talks about contractual guarantees only. Why? At the annuity man, that's all we do.

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I'm a pioneer. I am the actually pioneer and the person that started contractual guarantees

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only. That concept um in the annuity world that that's all we look at. That's all we recommend.

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That's all we allow you to buy. We don't sell it. You buy it. You know, we sell more than anybody

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on the planet. No one agent in the country. It's because we're not hammers looking for nails. You

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make the decision on your terms and your time frame. So with that being said, see you next