196: Understanding Tax Brackets

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 4 February 2021

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Understanding how the tax brackets work will aid your tax planning and make for more informed, reasonable discussions of tax policy. People don't actually grasp how tax brackets work and they routinely overestimate how much they pay in taxes. We think there are four reasons why tax brackets are hard for people to comprehend. Listen to this episode to find out what they are and to gain a better understanding of tax brackets. See full show notes here https://www.whitecoatinvestor.com/understanding-tax-brackets-podcast-196.

For those with a firm grasp of how they are taxed, we also answer listener questions about choosing stock options or restricted stock units at your next job, what are the major classes of bonds the average DIY investor should understand and consider, which bond classes are least correlated with stocks, what a reasonable overall bond allocation is, bond classes that individuals who live in high COLAs should consider, AOTC tax credits, financial book recommendations for children, and Non governmental 457s.

If you have student loans, SoFi https://www.whitecoatinvestor.com/slr/i/sofi practically invented student loan refinancing in 2011 and right now they have the lowest starting fixed interest rates they’ve had in years, which could help you save thousands of dollars on your student loans. Plus, they just lowered rates for physicians and dentists still in residency. If you refinance your student loans through SoFi, you’ll get a $500 cash welcome bonus just for listeners of this podcast.

Transcript

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0:00.0	This is the Whitecode Investor Podcast, where we help those who wear the Whitecode get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:18.0	This is Whitecode Investor Podcast number 196, how tax brackets work.
0:23.0	Welcome back, we're recording this on the 21st of January, it's going to run on February 4th.
0:28.0	A little bit of a lag there, hopefully nothing crazy happens in the financial world that makes this seem out of date when it runs.
0:34.0	I really think about that after last winter, when we recorded a bunch of podcasts in advance, and then of course the entire market went to hell in a handbasket.
0:44.0	It was very much seemed out of touch a little bit, some of our podcasts there until we caught up with the ones we recorded.
0:52.0	So you never know what's going to happen, maybe Bitcoin will drop by 90% or double or who knows what's going to happen in the next two weeks.
1:00.0	If you have student loans, so-fi practically invented student loan refinancing in 2011.
1:05.0	And right now they have the lowest starting fixed interest rates they've had in years, which could help you save thousands of dollars on your student loans.
1:12.0	Plus they just lowered rates for physicians and dentists still in residency.
1:16.0	If you refinance your student loans through so-fi.com slash whitecode investor, you'll get a $500 cash welcome bonus just for listeners of this podcast.
1:23.0	That's so-fi.com slash whitecode investor.
1:26.0	Terms and conditions apply, not all products available in all states.
1:28.0	Welcome bonus not available to residents of Ohio and cannot be combined with any other offer bonus or discount.
1:31.0	So-fi reserves are ready to change or terminate the offer at any time with or without notice or recipient is responsible for any federal, state or local taxes associated with receiving the bonus offer.
1:37.0	So-fi.com slash whitecode investor for more information loans originated by so-fi lending corp CFL 6054612 NMLS 1121636.
1:46.0	All right. We're going to be talking about taxes today.
1:49.0	And our quote of the day is very fitting for this. It comes from Martin Ginsburg.
1:53.0	He said as Forbes magazine with rare accuracy suggested a dozen years ago, tax shelter economics were so bad that 19 out of 20 investments can only be sold to groups of doctors.
2:03.0	The 20th scheme was awful beyond belief and could be sold only to dentists.
	...

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