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Impact of Taxes

Impact of Taxes

March 22, 2024

One major challenge in retirement is taxation, which can be one of the biggest expenses that many people
overlook. It’s important to consider tax rates, as even a small increase can take a sizeable bite out of your
retirement income.


U.S. tax rates make up an unpredictable element that has fluctuated greatly throughout time. The top tax rate
during World War II was 94%. From the 1950s through 1970s, top tax rates ranged from 92% to about 70%.
Fast-forward to today, the current top tax rate is 37%. Today’s rates are relatively low compared to those in
the 1930s through 1980s, yet federal spending and the U.S. debt continue to rise at an alarming pace.


It’s safe to assume that Uncle Sam will not be able to sustain these historically low rates. Even if rates do not
increase in the near future, a large portion of your retirement paycheck is still going towards taxes. What can
you do now to optimize your retirement income?


HYPOTHETICAL EXAMPLE
How federal tax rates can affect your retirement income



This information should not be considered as tax or legal advice. Clients should consult their tax or legal advisor regarding their own tax or legal situation. 

These are general marketing materials and, accordingly, should not be considered investment advice or a recommendation that any particular product or
feature is appropriate or suitable for any particular individual. These materials are based on hypothetical scenarios and are not designed for any particular
individual or group of individuals.