Proactive Tax Planning

A recent poll in Michigan asked people for their thoughts on the state of the nation’s economy today.

Only 35% of those polled described the economy as excellent (6%) or good (29%), while 65% described it as either not so good (28%) or poor (37%).

However, when asked how they would describe their PERSONAL financial situation these days, a majority of people (61%) described their circumstances as excellent (9%) or good (52%), while 38% described them as either not so good (25%) or poor (13%).

So the prevailing sentiment of this group is: I’m doing just fine, thank you very much, but the economy stinks.

There's a huge disconnect, right?

Michigan is not unique in its conflicted feelings. A national Gallup poll shows that Americans are five times as satisfied with their own lives as they are with the economic direction of the country as a whole.

I'd be in this camp for sure. How about you?

This is interesting from the Wall Street Journal. It profiled people who make $400,000, a level some politicians are using as a new line in the sand to define wealthy households.

Just 2.6% of U.S. make $400,000 or more income. The image shows the breakdown by state. Many of those live in high-income-taxed states.

You know what they say, "Wealth is what you keep, not what you make."

In any case, it’s hard to envision a world in which being in the top 3% of income is not considered rich.

It's harder to save taxes on earned income, but it's very easy to set yourself up for reduced taxes in retirement. My book, Get Me to ZERO, can help you do just that (available on amazon).

If we’re in the top 10%, we want to be in the top 5%. If we’re in the top 5%, we want to be in the top 1% (about $786,000 in 2022). If you’re in the top 1% (about $2.8 million in 2022), you want to be in the top 0.1%.

How does Medicaid work for LTC patients?

This week’s blog post explains how Medicaid works in relation to long-term care (LTC) services.

This example shows the financial effect on Susan when her husband needs care beyond what she can now physically and emotionally provide (after 4 years of caring for Frank at home).

Simply CLICK the button below to read the post.

It’s a quick and educational read. And feel free to share this with those you care about.

all the best… Mark

How Medicaid Works for LTC - Retirement Income Planning | Mark J. Orr, CFP RICP Medicaid is a joint program with the federal government and is run by each state (the rules are generally similar but do vary by state). Below is an example from the CLTC course (a 600+ page textbook to pass the test) to earn the “Certified in Long-Term Care” designation. By the way, it does not...