What if I told you it would make sense financially to no longer keep working to pay less taxes?

People go, what are you just say?

What I'm saying is there are instances where it can actually make sense for your financial

situation to stop working because you will pay less in taxes over the course of your lifetime.

Now, what you're wondering is, okay, I'd pay less in taxes, but am I also going to take home less money? And that's what we're going to explore in today's episode. There are, crazy enough, instances where it can make sense to stop working. You will take home more money at the end of the day by no longer working. And if some of you are listening to this, I know you're going, oh my gosh, I never even considered this. Should I be no longer working? What I don't want you to do is listen to this episode and then all of a sudden go quit your job. Okay. What I want you to do is have a good plan. It'll tell you when you are actually in a great position to retire early. So go through a process either with our firm here or any other financial advisor that you deem is competent and go through that with them now let me say this i'm going to start off with a few dopey jokes okay and then we're getting to the fun and the bulk of today's episode which is a very important one because i don't want you needlessly working if you shouldn't be working okay so let's explore this the first dopey joke that i'm going to tell you and this how i start off these calls with my clients just so you guys know i'll give them a story and the story comes from a client who's very nice and very close with me at this point and their child is about 22 years old at this point and they've come to me and they said all right i need you to talk to my child that the client client told me said okay what do you only talk to them about they go they're talking nonsense right now i go about what they go just go talk to them i said okay so i talked to the child child's working first job and they said all right i'm thinking about declining my bonus this is what the child of the client told me. I think about decline my bonus.

I said, why would you do that? They go, well, you know, first job out of college, I'm making pretty good money. I think, I could be wrong here, so tell me if I'm wrong, that if I make more money, I'm going to get taxed at the highest bracket, that ordinary income bracket, that marginal system we have here in the U.S. I said,

that's true. They said, got it. So what I don't want to do, so you confirmed it. Thanks so much, Ari. I don't want to accept this bonus. I said, no, no, no. That's not what we want to do here. Yes, if you get a bonus of $10,000 and you are taxed at 30% between Fed and State, which, by the way, It's not what it was. Just an example. Well, that's $3,000 that would be going to taxes, meaning you're taking home $7,000. And they go, yeah, 3,000 is a lot of money. I go, it is. But it's a net take-home pay of $7,000. You are going to put more dollars in your pocket by paying more taxes in this instance. They're like, oh, I see. So just needed a little click

there. Now, once it click, they're good to go. Same examples I'm going to go through here for you guys.

Sometimes it makes sense based off your age and your, you know, RMDs and all these different things

where it can make sense for you to stop working, even though you could keep working and bring in another

$200, $200, $300,000, $400,000,

because you're going to get crushed in RMDs shortly, and I need that income to be low to do a big

Roth conversion, which is going to save you millions as opposed to just bring it in a few hundred

thousand in a single year. So it depends on your situation. And that's where we're going to go through

today's episode. So with that being said, let's go over a recent comment of the week. And this is

another one. Sometimes I'll pull from iTunes, sometimes I pull from Spotify. This one is coming from

YouTube. And this comes from Darrell Bratton, 9679, who says, love the channel, love the show, and the

fire movement, recreational employment. So what is he saying here? What he's saying here is the fire

movement, a lot of you know what this is, it stands for financial independence retire early,

and I don't subscribe to that. People going, well, I think that's kind of exactly what you do.

I listen to your show.

You talk about an early retirement. What I talk about is recreational employment. So replace retire early with recreational employment. So financial independence retire early becomes

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