Apr 22, 2021
The 1970s was a great decade for a lot of things but, financial speaking, there’s a lot that we want to leave in the past.
We seem to be coming to a crossroads in the country as spending continues to rise while taxes remain at low levels. It seems like the pandemic exacerbated the problem even further, and we’ve heard a number of proposals for generating revenue at a Federal level.
On this episode of My Smart Retirement, we’ll look back on that era of bellbottom jeans and disco balls and see what similarities exist with the 2020s. Our country was also dealing with such high inflation that the Federal Reserve forced the economy into a recession to get it under control.
The biggest concerns we’re hearing come relate to rising taxes and Social Security benefits running out. As for the latter, projections say the excess reserve could run dry by 2035 and benefits would be paid out through payroll taxes from there. But there are a number of proposals that are being presented to help solve this issue.
Regardless of whether it happens with the current administration or after, it seems inevitable that taxes will have to increase in many different areas. We’ll get into some of the most likely places where this could happen and discuss a recent report from the Tax Foundation.
Regardless of what happens, you can ensure you’re prepared by doing proper planning. Connect with us or another financial professional and begin taking the necessary steps towards retirement.
Check out the full episode or use the timestamps below to hear a specific segment.
What we discuss on this episode:
0:34 – What’s this topic all about
1:48 – Tax Foundation analysis
2:51 – Creating a donut hole
5:24 – Tax changes
7:16 – Capital gain taxes
8:45 – Benefits get capped, should taxes as well?
10:58 – Going back to the 1970s
13:25 – Inflation
14:10 – Supply and Demand analysis
16:16 – Consumer spending
19:25 – Wrapping up with final thoughts
For additional resources and planning help, visit us online at http://flemingfinancialservices.com