Hegna's Hotseat

Tax Cuts, Long Term Planning and What it Means for Your Retirement


resident Trump released his tax proposal a few weeks ago, now that the immediate reactions have cooled, let's take a look at some of the market reactions and how this can affect retirement.

In a normal environment, if tax cuts are even in the discussion, there is typically a reason for long term optimism.

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What’s my gauge for looking at interest rates and long term economic optimism? I look at the 30 year Treasury Bond rates. What happened to those rates during the days before and after the tax proposal? Not much. Here are the few days before and after:

  • 4/24 - 2.93%
  • 4/25 - 2.99%
  • 4/26 - 2.97%
  • 4/27 - 2.96%
  • 4/28 - 2.96%
  • 5/01 - 3.00%
  • 5/02 - 2.97%

They didn’t move much at all! Lower taxes would mean more potential for velocity of money but what's holding everyone back from long term optimism? Well, I've talked about it a few times before in my economic commentary: the $20 trillion+ in US Federal debt and our aging population.

Tax cuts are not going to solve those two issues overnight.

One of the most common objections you, as advisors, are going to see for the next 10 years will be about purchasing an annuity when interest rates are “low.” Make sure you are prepared and have a thorough answer.

If you haven’t checked out the web classes offered on Insurancewebx, I encourage you to check them out. I've got a few friends on there, Curtis Cloke, Annette Bau, Steve Savant, Bill Cates, just to name a few. I'm hosting a web class coming up on May 22nd just about life insurance and how to think outside of the box with some niche strategies. Don’t miss out!

Register here!


PS: We’ve recently added new products to our online store, if you haven’t been in a while check out the new slide decks and the Mp3 audio downloads Get The Tools The Pro's Use.

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