How to Avoid the Retirement Tax Time Bomb with Ed Slott

A lot of people mistake “tax-deferred” for “tax-free.” This can be beneficial in the short term, but can ultimately leave you owing more on higher balances at higher rates. But what if, in some cases, the best course of action is to take advantage of the low rates available right now, so you can grow your money 100% for you - and not Uncle Sam - for the rest of your life?

My guest, Ed Slott, makes the case for this in his new book, The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes, and Combat the Latest Threats to Your Retirement Savings. He’s created an easy-to-follow plan that helps you place your assets to avoid traps and keep your hard-earned money, no matter what.

As a CPA for over 40 years, Ed is uniquely qualified to tackle this problem. He knows the ins and outs of IRAs better than just about anyone and works tirelessly to help people put more of their hard-earned dollars back in their pocket. At his Elite IRA Advisor Group (of which I am one), he trains a select team of 450 advisors to turn his research into practice for their clients.

Today, Ed returns to the podcast to talk about the benefits of paying taxes at the record lows we’re experiencing right now, how tax-deferred assets can hurt us when we’re most vulnerable if we’re not careful, and how laws passed in the wake of  COVID-19 may affect your retirement planning for years or decades to come.

In this podcast interview, you’ll learn:

  • Why Ed believes that typical accountants and tax preparers are history teachers - and working with them does nothing but show you what you could or should have done.
  • Why so many accountants are short-changing their clients by recommending they choose tax-deferred assets.
  • Why Ed’s traditional IRA has a balance of $0 - and how this will protect him from a massive tax bill, as well as Medicare costs, later in life.
  • The reason so many people aren’t actually in a lower tax bracket in retirement.
  • How the SECURE Act has created huge risks in long-term and legacy planning - and why you may now need to update your trusts.
  • The biggest mistake that people make in leaving money to the next generation.
  • Why life insurance can provide a better benefit to families than an IRA.
  • Why so few people are familiar with Qualified Charitable Distributions - and how they can offer huge value in tax preparation.
  • What makes the health savings account the deal of the century.

Interview Resources

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Retirement Planning