Straight To The Point:

Tax code changes could be affecting the stock market. In the inaugural episode of The Tax-Free Zone, we’ll analyze the potential connection between the two, and Chris will give us his top takeaways on recent financial news.

The Real Deal:

Why Produce A Tax-Free Zone Podcast?

  • 00:44 – There’s a lot of financial noise out there, and after awhile, that information can get lost in translation. If you’re not careful, it can even be harmful. We want to educate you about the financial world and give you the tools you need to make sound financial decisions.

What You Need To Know About Recent Tax Code Changes.

  • 3:16 – Tax brackets are shrinking. The ceiling for you tax bracket is being lowered, and depending on where you fall in your bracket, you could find yourself in a new tax bracket all together. There’s no need to get lost in the numbers, but generally speaking, each bracket will see a reduction of two to three percentage points. This means you could pay less in taxes.

Not Everyone Will Benefit.

  • 6:37 – The new tax code caps deductions on State and local income taxes (SALT Deductions) at $10,000. This means if you have real estate taxes, income taxes, or sales taxes that are in excess of $10,000, you’re going to lose with this limitation, and you might have to pay more in taxes. Furthermore, the new tax act eliminates personal and independent exemptions. If you’re single, it could affect your wallet.

Who Are The Winners?

  • 8:10 – Business owners and folks with a household income of more than $200,000 will benefit. Retirees and pre-retirees also stand to benefit. Taxes are on sell right now. We’re in a period of historically low tax rates. If you’re retired or are about to retire, take advantage of the recent tax changes.

How Are Tax Code Changes And The Markets Correlated?

  • 10:19 – The stock market has been volatile recently. It’s tough to know whether that can be attributed to the January jobs report or the tax act. It’s also possible there’s a link between the tax code changes and recent volatility. Major corporations took advantage of the impending tax changes to hire more employees, and unemployment numbers dropped as a result. Ultimately, that might have created fear of economic inflation in the future and triggered a roller coaster ride on Wall Street.

Beyond The Zone:

The host: Chris Patterson – EmailWebsite – Tax Free Retirement Toolkit – Call: 904-285-4489

The Toolkit:

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