Retirement Income Reality Check
Published Friday, November 22, 2019 at: 7:00 AM EST
With stocks closing today near an all-time record high, a good chance of an increase in Federal tax rates in 2021, and the deadline for end-of-year tax tactics closing in, this is a reminder to run a reality check on your retirement income plan.
The $1 trillion federal deficit, the soaring U.S. debt level to pay for entitlement, and changing political fortunes make it much more likely that income taxes will head higher.
Managing your tax bracket now — with the growing likelihood of a hike in federal income tax brackets — can lower your tax bill not just this year but next year, as well. This is especially timely for business owners with an interest in a pass-through entity, like an LLC, S corp, or a sole proprietorship.
The possibility of higher tax rates, along with the stock market's recent highs, presents an opportunity for individuals with a concentrated position in a single stock. With the end of the year approaching, this is a good time to consider taking a long-term taxable gain to lower your risk of something going wrong with that company or industry.
The Standard & Poor's 500, after closing at a record high on Monday of 3,122.03, closed the week at 3,110.29.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.
- Stocks Closed At A Record High; What's Expected For The Rest of 2021?
- Jobs Situation Report Pushes Stocks A Fraction From All Time High
- Inflation Rate Doubled In Past Two Months
- Fed Signals It's Thinking About Starting To Talk About Tightening
- Expect Inflation To Make Investors Nervous Through 2021
- Stocks Closed At A Record, Ignoring A Bad Jobs Report
- Stocks Soared 5.2% In April; Now, For The Good News
- A Window Of Opportunity Is About To Close
- Retail Sales, Housing Starts, And Stocks Rocket Higher
- The Fed Is Not Braking The Boom Anytime Soon
- A Black Swan Event And Higher Taxes Persist As Financial Risks Amid The Boom
- What You Need To Know Right Now To Manage Your Wealth
- Economic Expectations Improved Almost Overnight
- Investors Beware: The Asset Valuation Paradigm Changed
- Fed Says It Will Stick To Its Plan, As Bond Yield Rises
- Amid Strong Crosscurrents, Stocks Sank 2.5% This Past Week
- A New Rover Landed On Mars And Stocks Closed Lower For The Week
- Ironically, Amazon Profits By Perpetuating Stock Bubble Myth
- Stocks Closed At A New Record High: Can The Party Last?
- Don’t Fall For It
- Housing Boomed Again In December
- The Bad And Good Financial News This Week
- Stocks Set New High Closing Price Amid Turbulence
- Stocks Gained +16% in 2020; Wall Street Expects +7.6% In 2021