John Smallwood on “The Financial Quarterback”
This episode was drawn from John’s appearance on The Financial Quarterback with Josh Jalinski. John and Josh’s conversation hit the highlights of the Biden tax plan and reviewed the fundamentals of financial planning.
John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a seven-year recipient of the Five StarSM Wealth Manager Award.
This is what you should know about the Biden tax plan:
- Many small businesses would lose the 20% QBI (Qualified Business Income) tax credit.
- The top marginal income tax bracket would return to the pre-2017 rate of 39.6% from today’s 37%.
- Earners over $400K would move to the top income tax bracket. This reflects a shift downward from the current threshold of $612,350 for the top bracket.
- Earners over $400,000 would see itemized deductions limited to 25%, exposing a lot more of their income to taxation.
- The 401(k) would change from a tax-deferred account to a tax-credit account. For high-income earners, this would remove any incentive to use 401(k)s—except for the employer match.
Whatever the outcome of the election, at Smallwood Wealth our approach to financial planning won’t change. As always, our focus is not on “miracle” financial products, but on strategies that protect and grow your wealth, protect your income, and protect your economic value.
You’ll find many other great resources on our website, such as 19 Sources of Retirement Income, which offers ways to increase your existing retirement income.
If you are new to Smallwood Wealth, schedule a Wealth Curve Conversation by clicking this link. You can also connect with us on social media, or call us at (800) 797-1000. Set up a free, no-obligation 30-minute phone call with a qualified advisor to discuss how to prepare your financial plan for the election and the months that follow.