WCI #196: Understanding Tax Brackets
White Coat Investor Podcast
Dr. Jim Dahle of the White Coat Investor
4.9 • 2.3K Ratings
🗓️ 4 February 2021
⏱️ 41 minutes
🧾️ 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 are finding our podcasts informative and helpful, check out our website! Since 2011 we have been working hard to provide valuable personal finance and investing information through thousands of blog posts written by an array of authors. You can find information on how to manage your student loans, fix and avoid common financial mistakes, understand your retirement accounts, optimize your investments, find professional help at a fair price, get started investing in real estate, and so much more, all at no cost to you. You can find out more about the courses we offer, the conferences we put on, the newsletters we provide, and interact with other WCI readers through our online forum. Head on over to https://www.whitecoatinvestor.com to start learning today. You can do this and The White Coat Investor can help.
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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's 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 on 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 are finding out podcasts informative and helpful, check out our website. |
| 1:04.0 | Since 2011, we've been working hard to provide valuable, personal finance and investing information through thousands of blog posts written by an array of authors. |
| 1:11.0 | You can find information on how to manage your student loans, fix and avoid common financial mistakes, understand your retirement accounts, optimize your investments, find professional help at a fair price, |
| 1:21.0 | get started investing in real estate and so much more, all at no cost to you. |
| 1:26.0 | You can find out more about the courses we offer, the conferences we put on, the newsletters we provide, and interact with other WCI readers through our online forum. |
| 1:34.0 | Head on over to whitecodeinvestor.com to start learning today. |
| 1:37.0 | You can do this and the whitecode investor can help. |
| 1:41.0 | Alright, we're going to be talking about taxes today and our quote of the day is very fitting for this. |
| 1:47.0 | It comes from Martin Ginsburg. 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. |
| 1:58.0 | The 20th scheme was awful beyond belief and could be sold only to dentists. |
| 2:02.0 | And I think there's a lot of truth to that. So many doctors are just so terribly worried about taxes. |
| 2:09.0 | That they do all kinds of crazy things that cause them to come out behind even after taxes. |
| 2:14.0 | So you got to be really careful about that and we'll talk more about that as we get into the podcast. |
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