Financial planning is as much—if not more—about considering future tax environments as it is about current ones. Based on this principle, you and your clients need to brace yourselves for significantly higher taxes.
Just days after signing into law another mind-bogglingly large relief package ($1.9 trillion) there are signals that President Biden is eyeing his next step—an economic program that includes higher tax rates, designed, in part, to cover the cost of government spending. The $1.9 trillion President Biden successfully pushed through Congress comes after a year in which some $3.4 trillion was allocated. And as a candidate, President Biden made tax increases a priority of his proposed tax reform, as this analysis from the Tax Foundation shows.
No matter how you slice it, taxes are almost assuredly going up, and possibly very soon. The time to plan is now. One bright spot amid legislative action and government spending is a tucked away provision increasing the amount that can be allocated into cash value life insurance before the structure faces MEC status. With this change and looming hikes, you need to be having tax conversations with your clients right away.
Our upcoming webinar discusses how you can turn the prospect of higher taxes into planning opportunities through the use of an innovative software platform available through IAMS that can illustrate the impact of rising taxes on retirement. Marry this tool with our wealth of consumer-facing point-of-sale pieces, seminar presentations, and guides, IAMS becomes your go-to-resource for tax-advantaged solutions.