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Prepare for tax changes in retirement from "summary" of The Power of Zero, Revised and Updated by David McKnight
As you approach retirement, it's crucial to keep in mind the potential for tax changes that could impact your financial situation. Being prepared for these changes can help you navigate the tax landscape more effectively and make informed decisions about your retirement income strategy. One key consideration is the possibility of higher tax rates in the future. With the national debt continuing to rise and the growing costs of entitlement programs like Social Security and Medicare, it's likely that tax rates will need to increase to help cover these expenses. This means that you may end up paying more in taxes on your retirement income than you initially anticipated. Another factor to keep in mind is the potential for changes to the tax code that could affect how your retirement savings are taxed. For example, lawmakers could decide to eliminate certain tax breaks or deductions that you currently rely on to reduce your tax liability. This could result in a higher tax bill for you in reti...
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