John Martin discusses Business Tax Strategies: Increasing Income and Lowering Expenses.
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-john-martin-with-compass-wealth-strategies-discussing-business-tax-strategies/
Clients can achieve a close to zero percent tax bracket in retirement. John Martin emphasizes the importance of having the right amounts in tax-deferred, taxable, and tax-free accounts to contribute to this goal. He points out that many individuals have the majority of their assets in tax-deferred accounts, which can result in surcharges that significantly reduce social security benefits. Therefore, it is crucial to address this issue and carefully analyze the positioning & distribution of assets. This issue arises due to the IRMAA surcharges, which are additional Medicare premiums for higher incomes. Since these premiums are paid from social security benefits, a substantial increase in Medicare premiums can lead to a reduction or even elimination of social security income.
To mitigate this issue, the episode suggests diversifying assets into tax-free accounts, such as Roth IRAs, do not count as taxable income and can help minimize the impact of IRMAA surcharges. Another option mentioned in the episode is the strategic use of properly designed life insurance. By ensuring the right distribution of assets across tax-deferred, taxable, and tax-free accounts, clients can potentially achieve a close to zero percent tax bracket in retirement.
Overall, the episode underscores the role of large deductible contributions to retirement accounts, along with a properly structured life insurance policy to pay for the ultimate taxes on distributions, and emphasizes the significance of seeking proper guidance to access these opportunities. By considering the different tax advantages and implementing strategies such as purchasing life insurance with tax-deductible dollars in a deductible CASH BALANCE /Profit Sharing Planes, clients can optimize their tax situation.
John explained: “We serve our clients best by providing comprehensive Financial, Estate, and Retirement Planning, through the prism of uninterrupted growth strategies along with protecting their assets while mitigating taxes.”
About John Martin
Hard-working business owners and Professionals shouldn’t have to forfeit paying unnecessary taxes while working and especially during retirement.
John Martin, CEP, RFC, IAR of Advanced Tax Planners started his career 27 years ago as an independent financial advisory & wealth management firm in New York.
He has served the business community by providing tax reduction strategies, along with creating, protecting, and preserving his client’s wealth for their families.
John integrates education with holistic financial planning as the foundation for building real Financial Independence more rapidly, especially when taking advantage of all the tax reduction methods the tax code allows.
Each client can expect the highest level of integrity and confidentially working together to design and implement the right strategies to best achieve their individual goals and aspirations, and to control their financial life.
John is based in Western New York and married to his wife Kit. They have a son and a granddaughter Emma. He enjoys time with family, reading, golfing, and traveling.