With the Tax Cut and Jobs Act set to expire at the end of 2025 and the national debt skyrocketing, the tax time bomb is ticking. It’s more important than ever to prepare for the inevitable tax increases that could significantly impact your financial plans. Join Jude and Marc as they discuss the importance of proactive tax planning and share more about the Ticking Tax Time Bomb webinar coming up in February, 2024.

To sign up for the upcoming webinar and take control of your financial future, visit centrusfs.com or call 800-779-4592, and don’t forget to check out thetaxbomb.com, for additional valuable resources.

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Episode Transcript

Note: This transcript was produced using AI, so please excuse any typos and inaccuracies…

00:02

Any successful plan requires wisdom and preparation. And retirement is no different. It’s time for the plan wise retire free podcast. Hey,

Marc Killian  00:11

everybody, welcome in to plan wise retire free with Jude Wilson and myself here to talk about besting finance and retirement and the tax bomb. Tax Time mom and Jude’s upcoming webinar, we’re going to spend a little time on this podcast, which we’re also doing in video form as well. So you get to see my smiling face for a rare change. And we’re going to talk a little bit about this dude, because you guys have this great webinar coming up here at the end of February. And there’s a lot of stuff for folks to think about when it comes to the tax time. Um, it’s it’s ticking.

Jude Wilson  00:42

It is ticking my friend. And one of the biggest questions I get when I talk to people about the tax bomb, they’re like, dude, what exactly is the tax bomb? What are you talking about? Sometimes I feel like Paul Revere, except instead of saying the British are coming, I’m saying that taxes are coming, the taxes are coming. Because it is almost inevitable that taxes are going to increase in our lifetime, and possibly pretty significantly. So what we’ve termed the tax time bomb, is the fact that all of these things are converging at one time to possibly increase our tax rates. And the two biggest things that are converging are one, the tax cut and Jobs Act, right that was passed under the previous administration is going to expire at the end of 2025, December 2025. So what does that mean to everyday people like you and me? Well, these tax rates, these historically low tax rates that we’re enjoying right now, more than likely, they’re going to go up? Because if something’s not done by the end of 2025, right, and when I say something, I mean, aren’t our lovely friends in Congress, and I don’t care if you’re Republican, Democrat, Libertarian or vegetarian, it doesn’t matter to me. But more than likely, these gentlemen and women will have to get together and say to themselves, what are we going to do about this pending act that’s going to expire? Are we going to renew the act? Are we going to make the ACT permanent, make it into law? Or are we just gonna fight and call each other names and let this thing expire?

Marc Killian  02:30

Yeah, and if it expires due to goes back to the prior administration goes back to the Obama era administration. So the tax rates will go up a little bit, but also the brackets change. And that’s also the thing that people don’t realize it’s easier to climb up a bracket or a tax rate, excuse me, because the brackets have shifted. Exactly.

Jude Wilson  02:46

And that’s one of the things that we’re going to talk about in the upcoming webinar is understanding not only the tax is going to go up more than likely are going to go up. But understanding how taxes work in general understanding what are the rates? What are the brackets, because most people don’t really, truly get that. And if you get that, then you understand what the problem is that you more than likely you’re going to be facing, particularly if you’ve been saving money for retirement, or if you’re just a high earner. And you’re looking forward to making work optional. Well, if I’m going to continue that income, what does that mean to my net? pocketbook? What does that mean? In my pocket?

Marc Killian  03:28

Yeah, exactly. That’s

Jude Wilson  03:29

one of the things is the is that that exploration? Yeah.

Marc Killian  03:33

And of course, the other a big reason that you have to think about this being the case, Jude is is the debt clock, you know, it just think about the the how much money we owe, and how much money we’ve printed in our spending, and so on and so forth. And this thing keeps going astronomically. It’s quite terrifying to look at. Oh,

Jude Wilson  03:52

I suggest, and I know we’re going to have dropping in a look at it. But I suggest everybody go to US debt clock.org. Because you will see the debt clock in real time. And we can’t update it fast enough. Every time I do a seminar or speech. And I say we’re at 31 trillion in total debt. Yeah, by the next week. It’s much greater than that. In fact, that just just took a look at it right now. At the time of this recording. Believe it or not, we’re at $34 trillion. Wow. in debt. Now, let me let me break that down for you if you’re watching or listening, what does that mean? Yeah. If every American living today regardless of age, okay, if you were born yesterday, and we said, Everybody’s got to pay their fair share, and we’re going to divide this by every American. Every American would have to write a check for 101,009 ours today to pay off the debt completely.

Marc Killian  05:02

So you’re brand new and you owe 100 grand. Yeah, even if

Jude Wilson  05:06

you just took the pacifier right out of your mouth, right, gotta get ready to write a check for $100,000. But if we just limit it to people who actually paid federal income taxes, it becomes even worse, that check would be $264,000. For American taxpayer, wow. So there’s gonna come a point in time where the bill is due, or maybe not necessarily due, but we have to address how quickly it’s rising in reduce the deficit. And, and what we’re seeing in our webinar is, particularly people who are planning on retiring, axes are going to be the biggest expense regardless of the deficit, it is the biggest expense you have in your retirement expenses. So let’s figure out ways to make sure that you net out the most amount of income in your pocket and protect you from this potential ticking tax time bomb.

Marc Killian  06:06

Yeah, go old school, right. It’s not what you make, its what you keep, right? You know, when you get to retirement, and you want to try to keep as much as possible, tax efficiency has got to be a paramount piece of your overall retirement structure. It just has to be. Yeah,

Jude Wilson  06:20

I am so surprised when a new client comes in. And we do an analysis because most of our clients come from people who’ve already had financial advisors, right, we’re working with a current financial adviser, but for whatever reason, they’re unhappy, or they’ve heard of us to a friend or family member. I’m always surprised when I look at the the plans that were done for them, or sometimes no plan and look at and I see that nothing was discussed about taxes, I don’t know how you can be a good financial planner, and not at least discuss how taxes may affect your your outcome, right. And so in this webinar, we’re going to talk not only about the problem like we did today, but we’re also going to talk about some solutions that people can put in place right after the webinar, and try to go down that road of protecting themselves.

Marc Killian  07:13

Gotcha. So the best thing to do Jude is certainly to sign up for this right get in get involved with the webinar coming up. Again, it is complimentary, right. So if folks want to attend, all they got to do is reach out to you guys, I know you have the tax bomb.com. And that is a great website for you to check out, you’ve got some good information on there as well. And, of course, if people want to sign up or get ready for this upcoming webinar, you guys, we’ll send out the link and make it available and all that good stuff. So they can either stop by your main website, which is centrist fs.com, we’ll pop that up on the screen for you here as well send trust fs.com, or call them at 800-779-4592. It’s 800-779-4592 to get started. And it’s gonna be at the end of February. And this is coming out this podcast is right around February 1. So you got a little bit of time, but not much. Right. So reach out, get a spot, right. And again, it’s complimentary. I mean, it’s you know, it’s Digital’s not like you have to have a seat. But still, you want to make sure that you’re getting involved, right? Absolutely,

Jude Wilson  08:08

absolutely. Because this information, it’s so much better if you are proactive instead of reactive. And time may not be on our side, when we’re trying to put some of these strategies in place that can actually save you money. There’s some strategies that require that you start as soon as possible. And we can talk about that more when we get to the webinar. But definitely time is something that we cannot procrastinate on, when we’re looking at these strategies.

Marc Killian  08:37

Yeah, I mean, think about it, it’d be February of 24, and the current tax code sunsets in December of 25. And you might say to yourself, well, that’s almost two years away. But as we all know, two years flies by real quick. And when you’re trying to get things done and dealing with things, you know, things such as taxes and your finance, it takes a little time sometimes so you got to get busy.

Jude Wilson  08:57

So two things that I would I would ask our listeners to do if you really want to participate and get the most out of this webinar. Because sometimes we we’ve all done it, we’ve gone on a webinar, and we’re multitasking where we’re responding to emails are responding to text, and we don’t fully get all of the benefit that comes out of this of the webinar. Two things that I think would really help is number one, go to the tax bomb.com. From there, you’ll see a lot of information that we’ve talked about today, but you’ll also have the ability to take our tax calculator. Now that tax calculator is going to show you what the potential liability is in your current setup as far as the retirement accounts that you have today. So it’s really important because that is going to open your eyes to how am I currently situated, and how that may really affect me in the future. So that’s the first thing that I would ask people to do. And then the second thing is sign up for the webinar. So get online, go to the tax bomb.com and register for the webinar and bring that report with you. Because if you’re looking at the report and you’re attending the webinar, that’s when you’re really going to get the most out of this.

Marc Killian  10:13

And again, we’ll pop that up here is the tax bomb.com That’s the tax bomb.com. So dude, thanks for hanging out my friend here on this week. Thank you, my friend. Always appreciate you. Good to see you as well and do a little video for him. So we will be back with future episodes as always, but don’t forget to attend this upcoming webinar. We wanted to do this special episode about the upcoming tax bomb webinar with Jude and his team at centrist Fs. So give them a call centers have manana call because the website is sent with fs.com or the tax bomb.com or 800-779-4592. We’ll see you next time. Take care

Walter Storholt  10:55

preceding program is sponsored by Judy Wilson, who is solely responsible for its content. Financial Planning and advisory services are offered through prosperity Capital Advisors PCA an SEC registered investment advisor, with its principal place of business in the state of Ohio centers, financial strategies and PCA are separate non affiliated entities. PCA does not provide tax or legal advice, insurance and tax services offered through centrist financial strategies are not affiliated with PCA. information received from this podcast should not be viewed as individual investment advice. Product discussions and illustrations are hypothetical in nature and will vary based on many factors including but not limited to age, health, product, insurance, carrier and product design, you should consult the insurance carrier website and policy for detailed information. For information pertaining to the registration status of PCA, please contact the firm or refer to the Investment Advisor public disclosure website WWW dot advisor info.sec.gov. For additional information about PCA including fees and services sent for our disclosure statement as set forth on Form ADV from PCA using the contact information here in please read the disclosure statement carefully before you invest or send money