This includes Social Security and Medicare. Both are income-based programs, so the more you make, the more they take. At retirement time, the more countable income you have, the more your social security payments are taxed and the higher your Medicare costs will be. I.E. If you are retired and have combined income less than $44000 in countable income, 50% of your social security will be taxed, and your average Medicare cost will be about $150/ a month per person. As your income goes over that threshold, up to 85% of your social security could be taxed and your average Medicare costs will be about $500/ a month per person. The question is how can I have a high income and get the most out of every asset?  Any income that is taxable increases your countable income for social security and Medicare purposes. Examples are traditional IRA/401k/403b, pensions, social security itself, dividends, interest earnings, municipal bond income, investment income, capital gains income, business income, and real estate income. During your accumulation years think about how certain assets will affect you when you distribute those assets. Start now diversifying your assets that will be tax free at retirement and not count against you in increasing your countable income. At retirement the more income you make, the higher your tax bracket will be making all of your assets less valuable. I.e. if you are taxed at 10% and have $1mill, your real value is $900,000. If taxed at 30% and have $1mill your real value is $700,000. Things like Roth IRA’s, and permanent life insurance have the potential for tax free withdrawals at retirement and don’t increase your countable income.


Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 800 Westchester Avenue 4th Floor Suite N409, Rye Brook, NY 10573, 914-288-8800. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. TrueView Financial LLC is not an affiliate or subsidiary of PAS or Guardian.

Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.  Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.  


2020-96032  Exp. 04/2022