The document discusses the impending retirement of the baby boomer generation, which poses significant financial challenges due to a staggering national debt and long-term unfunded liabilities linked to Social Security and Medicare. As these individuals prepare to retire, concerns arise over their financial security, particularly with rising costs and potential devaluation of their benefits. Additionally, the document highlights tax implications for retirees, emphasizing the need for proper planning to mitigate financial burdens in retirement.

1. Avoiding
The TAX
Train
Wreck

2. 76,000,000
Baby Boomers
Rushing to Retirement

3. Huge Problem
No Money

4. Who are the Baby Boomers?
Most famous generation in American history.
The U.S. Census defines the Baby Boomers as those born
between Jan 1st, 1946 and Dec 31st, 1964.
You see, after U.S. troops returned from World War II,
they quickly settled down and everyone started having
lots and lots of babies.
This gigantic generation has transformed America
as they have passed through every stage of life.
Now they are getting ready to retire.
Read more:
http://www.businessinsider.com/facts-about-retirement-crisis-2010-12?op=1#ixzz2qylZeoJZ

5. The
Day of
Reckoning
is Arriving

6. Good News and Bad News

8. The Promises
Made
Can
Bankrupt a Nation

23. $202 TRILLION
US fiscal gap

27. http://www.forbes.com/sites/othercomments/2013/10/30/u-s-national-debt-1-1-million-per-taxpayer/
The public tends to focus on the total national debt, which just passed the $17 trillion mark
—up from $10.6 trillion when President Obama took office.
But that figure pales in comparison to the federal government’s long-term unfunded liabilities
—money the government is obligated to pay over and above the revenues it is estimated
to receive.
According to the U.S. Debt Clock, total long-term unfunded liabilities are at $126 trillion,
a $1.1 million liability for each U.S. taxpayer. The main driver of that astronomical number
is two of our major entitlement programs: Social Security and Medicare.
$1,100,000.00
Per
Taxpayer

28. $126,000,000,000,000.00
Equals
Bankrupt Nation

29. June 20th 2018

32. • But our politicians just keep spending money. In order to
pay the Baby Boomers what they are owed the federal
government may indeed go into even more debt and have
the Federal Reserve print up a bunch more money.
• So in the end, Baby Boomers may get most of what they
are owed. Of course it may be with radically devalued
dollars. Already we are watching those on fixed incomes
being devastated by the rising cost of food, gas, heat and
health care.
• What is going to happen one day when prices have risen so
much that the checks that our seniors are getting are not
enough to heat their homes?

33. • What are we going to do when those on fixed incomes are
buying dog food because it is all that they can afford?
• We are rapidly reaching a tipping point. As the first Baby
Boomers retire the system is going to do okay. But as
millions start pouring into the system it is going to start
breaking down.
• No, there is not much that we can do about it now. We
should have been planning for all of this all
along. Americans should have been saving for retirement
and governments should have been setting money aside.
• But it didn't happen.
• Now we pay the price.
Read more: http://www.businessinsider.com/facts-about-retirement-crisis-2010-
12?op=1#ixzz2qyw09Yjg

34. The Ticking
Tax
Time Bomb
What you don’t know about taxes and
your 401k ,IRA, 403b will cost you a
fortune

35. IRS Pub 525

36. Fox Business News ...
"The life insurance industry has the best IRS-
approved retirement savings plan today-and
most investors know nothing about it.
This retirement savings vehicle is not a
company-sponsored, pre-tax qualified, 401(k)-
type plan. It's also not a Roth. It's not an annuity
or whole life.
Despite sales of well over $1 Billion in 2011 for
the top 39 carriers surveyed, it is the financial
industry's No. 1 secret-Indexed Universal Life
(IUL)".
Read more: http://www.foxbusiness.com/personal-
finance/2012/02/22/legally-cutting-out-tax-man-in-
retirement/#ixzz2RpUtdNV5

37. Huge Tax Issues
Jan 22 (Reuters)
“The baby boom generation is moving
into retirement with something no
other generation has had:
huge tax liabilities.”

38. "They love the tax deduction when they are
putting money in, but some have no after-tax
accounts at all."

39. For single taxpayers whose earnings, including
50% of their Social Security benefits, are over
$25,000 ($32,000 for joint filers), 50% of
benefits taxed.
Once that income rises above $34,000 for a
single and $44,000 for joint files, 85% of
benefits taxed.
Paying a tax on your Social Security

40. "It's kind of a new thing with current retirees,"
observes Mackey McNeil, a certified public
accountant and personal financial specialist in
Bellevue, Kentucky. "They love the tax
deduction when they are putting money in,
but some have no after-tax accounts at all."

41. Big headache for retirees
A single person whose income is in the mid-
$30,000s could catapult herself into a 46%
marginal tax rate simply by withdrawing an
extra $1,000 or $2,000 from her IRA;
that could bump her into a higher income tax
bracket and a higher level of Social Security
taxes. (85%)
• does not even include local/state income taxes, which
can add an additional 8 to 10 percent tax burden.

42. The biggest burden, of course, will
be borne by people
who don't plan ahead
You can cut/eliminate taxes with
some planning.

43. Make lemonade out of lemons
Move from
Forever Taxed to
NEVER Taxed.