“In 1980 a new tax law was put into place that taxed up to 50 percent of a person’s Social Security income in retirement. In later years another threshold was put into place to tax higher amounts of income at up to 85 percent. So, even though these Social Security income strategies could increase your income, they may be partially taken back by the government in the form of additional taxes. The original intent of the law was to tax the rich. The thresholds that must be reached were made high enough to achieve that goal at that time. However, inflation has watered down those thresholds to the point that most middle class people may now be affected by those rules.” - Ken Davis, CLU, ChFC, CFP, CPA.
Ken and I talk through the taxation issues that drive seniors crazy.
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Syndicated financial columnist Steve Savant hosts the weekly video talk show for consumers entitled, Right on the Money and anchors the weekend news update On the Money News.
Steve is also the host of the daily producer show, Thought Leaders. Steve is of the top online author and videographer of... More