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Ron Caruthers

@roncaruthers

Jun 7, 2023

1. THE number ONE thing that can wreck your retirement

AND how to avoid it.

I've been in the finance game since my early 20's, so I've seen what a lot of folks have done right, and what a LOT have done wrong.

Here is what you want to pay attention to:

2. SEQUENCE RISK is one that a lot of people ignore.

Once you begin taking distributions from an account, it's not just WHAT you earn on your accounts, it's WHEN you earn the money as well.

And if you take losses in the early years, the effect can be devastating.

3. Let me show you what I mean.

If you retired in 1996 with $1 million dollars, you had 4 years in a row of positive returns.

1996: 22.96%
1997: 33.36%
1998: 28.58%
1999: 21.04%

This is from the S&P 500 Total return.

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Ron Caruthers

@roncaruthers

Jun 6, 2023

1. Born free, but taxed to death.

It was a bumper sticker in the 80's, but you pay a LOT more than just your Social Security, Federal and State income taxes.

Here is a list of......

94 (!!!!!!!!) other taxes that you pay.

Be prepared to read it and cry.

2. Here are the 97 taxes in the US tax code:

Air Transportation Taxes
Biodiesel Fuel Taxes
Building Permit Taxes
Business Registration Fees
Capital Gains Taxes
Cigarette Taxes
Court Fines
Disposal Fees
Dog License Taxes
Drivers License Fees

3. Employer Health Insurance Mandate Tax
Employer Medicare Taxes
Employer Social Security Taxes
Environmental Fees
Estate Taxes
Excise Taxes On Comprehensive Health Insurance Plans
Federal Corporate Taxes
Federal Income Taxes
Federal Unemployment Taxes

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Ron Caruthers

@roncaruthers

Jun 5, 2023

1. Everyone on the internet teaches you how to get rich.

The problem is that NOBODY teaches you how to be WEALTHY.

JUST making $$ doesn't make you wealthy....

KEEPING it does.

After 30+ years of tax planning, here is how not to get screwed by taxes.

2. Yes, you need to increase your income, but I've seen countless people make more money only to NEVER actually see it in profit.

Hopefully, these 3 tips will help you to retain more wealth:

3. Tip #1

Understand the difference in marginal and effective tax rates:

Effective is the AVERAGE of what you pay.

Marginal is the HIGHEST tax rate you pay.

As you make more money, your marginal rate can go as high as 37% (Plus whatever your state adds in!)

Read 10 tweets

Ron Caruthers

@roncaruthers

May 4, 2023

1. When I was 13, I lied about my age to get hired bussing tables

I could’ve spent my summer afternoons goofing off, but I wanted to make money.

Every young man should have this healthy drive.

And if it isn't getting cultivated young, it won't show up at 30.

2. There was recent outrage I saw online… (big surprise!)

A McDonalds in the Midwest had a sign in their window that said

“Hiring 15 years old with a valid workers permit”

I scrolled through the comments…

“Child labor…”

“This is abuse…”

It got me thinking...

3. If teens are being told by their parents that earning their own money is a form of abuse…

How are they going to think of work when they’re adults?

How many adults think of work like this right now because of how they were raised?

Read 10 tweets

Ron Caruthers

@roncaruthers

Dec 22, 2022

1. 3 things I would do before the end of the year:

First, if you do NOT have a will or a trust, fix that.

If you don't have an estate plan, your state will have one for you, and your family will NOT like it.

And write down your logins and passwords so they can get to stuff

2. Next, I say all the time: the tax code was written for the self-employed, the investor, and the business owner.

DON'T say you can't have one.

I've known exactly ONE client over the last 3 decades that had a contract where her company 'owned' her brain.

3. She was a scientist, so her contract literally forbade her to do anything outside of her job, and if she did, they had claim to the revenue.

Of course, her husband did NOT have a such a contract, so problem solved.

If you have no idea what to do, go to a bookstore and read.

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Ron Caruthers

@roncaruthers

Dec 5, 2022

1. Where I would invest $10,000 (or some number close to that) right now.

So the markets are starting to come back somewhat, so where, exactly, would I invest $10,000 right now (or $5,000 or $15,000....some number that is decent but not like $50,000)

Here is what I would do:

2. If I had ANY money in traditional IRA's or SEP plans or old 401ks, I would figure out EXACTLY how much I could transfer to a ROTH and use my $10,000 to pay the taxes due and get them over with.

For instance, if I was in the 22% tax bracket, and 6% state, that's 28% total.

3. $10,000 would pay the tax due if I converted $35,714 of my tradtional IRA to a ROTH IRA.

Now that $35,714 gets to grow tax-free for the rest of my life AND 10 years after I'm dead.

And I can use it tax-free as well.

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