Expecting the Unexpected & Tax Reform

Tax reform is coming very soon and can affect
you. 


In case you missed it, we touched on what this could mean on last
week's show. 


Any fans of the Rocky movies out there? Remember how before the
fights there was all this boasting, yelling, and a lot of hype?
None of it meant anything until they got in the ring. 


 


That's a little bit like what's been happening between the Senate
and the House, Democrats and Republicans. There's been a lot of
hype, a lot of tweeting, but now we get to see what's actually
going to happen. 


 
There are two things that could happen:  Massive amounts
of programs from the government are cut. This means programs such
as social security, welfare, medicare, medicaid.  401K
contributions could be cut. The government loses a lot of revenue
through 401Ks each year. When you put money in your 401K, it's
PRE-TAX. That means the government doesn't get paid from that
immediately. They get paid long-term, when you take the money out.
So now, they're thinking of cutting the amount of pre-tax savings
you're allowed to do. We're talking from $18,500 to $2,000
(rumored). 

There will be changes legislatively and life changes. Is
your plan built to handle change? 
  If your plan can't handle change, then your plan isn't
built well. 

 


Let's look at an example. 


Say you're saving for long-term care. The average cost is up to
$8,000 a year now. The cost of long-term care continues to
sky-rocket! Suppose you start investing into long-term care
insurance. You continue to pay into it, but eventually the
government takes over and says it's just part of general medicare
coverage now for anyone in retirement age. You just wasted all
that money!  I looked at this example with a client
recently. Our solution? We decided to purchase a life insurance
policy that contained long-term care benefits. This is a huge
advantage because it's, you guessed it,
flexible.  


Your plan needs to be a living, breathing document that changes
over time. If you don't feel like your plan is where it should
be, I'd love to meet with you for a free consultation and see
where we can improve. 


 
Listen to The Full Show:

Listen in for tips on how you can prepare for the impending tax
reform. Plus, what you should be looking for in a financial
planner. (Listen in at 7:42).


 
Key Quotes:

"There will be changes legislatively and other changes that come
along throughout your life. Is your plan built to handle
change?">  > "We're about to see whether tax reform
can be passed. If it is, it can be the most remarkable change to
the tax system in 30 years."


 


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GREAT LINKs To LEARN MORE:

What You Need to Know About the Tax Reform, Plus Who It Hurts

Every Angle of The Major Healthcare Changes