Social Security and Pension Beneficiaries: ARE YOU Missing Out On One of The Most Important Retirement Strategies?
Since 1983 Americans have had to pay tax on Social Security Benefits. They also must pay tax on Pension Income. Unfortunately, many investment advisors do not discuss these facts with their clients. There focus is to work on your stocks, bonds, or mutual funds.
If a worker has income from sources like Social Security, pensions, investments or withdrawals from Tax-Deferred Accounts, for example, taxes may be owed on the portion of the Social Security Benefits if their "combined" or "provisional income" exceeds certain levels. It is possible that up to 85% of the benefit may be taxed on Social Security Benefits!
We At WealthCamp Advisors wish to make is clear how the implications of the taxation of various sources of income could impact your retirement future. Consider the following scenario:
Example One-
Couple taking Social Security at age 62.
- Social Security Income: $37,998
- Other Income: $32,002 to meet their income goal.
- Provisional Income: $51,001
- Taxable Threshold 1: $9,500.50
- Taxable Threshold 2: $2,450.35
- Total Taxable S.S.: $11,950
- Net Adjusted Gross Income: $43,952
Example 2: Couple Taking Social Security at age 70.- Social Security Income: $66,876
- Other Income: $3124 to meet their income goal.
- Provisional Income: $36,562
- Taxable Threshold 1: $2,281
- Taxable Threshold 2: 0
- Total Taxable SS. : $2,281
- Net Adjusted Gross Income $5405
Although "delaying" worked out better for Couple 2, it is important to note that Couple 1 could have taken advantage of "better strategies".
Couple 2 also needed to take non-taxable income into account in the years prior to taking Social Security Income.
Both Couples needed help, even though many think Couple 2 was better off.
So why then, would you not visit with a Wealthcamp advisor to learn the key facts on taxation of retirement benefits . WealthCamp regularly works with our clients tax-advisors to help you get the best results. We will show you how you can purchase non-taxable Financial Tools to Increase Spendable Retirement Income?
Contact us regarding our WealthCamp RIS (Retirement Income Strategy) today.
*Wealthcamp regularly works with your auditor or tax-advisor to help you get the best results.
