• The collapse of Silicon Valley Bank was the 2nd largest bank failure in US history
• Stocks plummeted as fear of more bank failures shook the foundations of the global economy
• Investors flocked to gold, sending prices of the precious metal soaring

The Collapse of the SVC Bank and the Economic Effects

The collapse of Silicon Valley Bank, the 2nd largest bank failure in US history, sent investors and officials into a panic. Close to 190 banks could face Silicon Valley Bank’s fate, according to a new study.

Most of the money was not insured, as the FDIC only guarantees bank deposits up to $250,000. According to some reports, more than 90% of all deposits fell outside of that threshold, resulting in an “awful lot of people losing an awful lot of money”. It’s highly probable that those people will never see that money again.

Fears of a global financial meltdown like the 2008 Financial Crisis are growing. More bank runs could decimate even insured depositors as the FDIC exhausts its emergency funds.

Stock prices are plummeting as the contagion spreads around the world. Credit Suisse bank had to be bailed out, leaving $17 billion of its bonds worthless. Economic conditions hold a frightening resemblance to the Lehman Brothers collapse that ignited the Great Recession.

That crisis saw the value of retirement funds drop in half after the Dow crashed nearly 7000 points. However, during the same time, physical gold leapt from $650 to a historical high of $1950.

Precious metals are a proven hedge against financial turmoil. Gold exists independently of the banking system. Analysts predict the rush to the safe haven asset will send its price to new record heights. Acquiring precious metals could not only preserve your wealth but potentially earn you a profit as everything else crashes.

Contact us today at 800-462-0071 to learn how you can protect your funds with precious metals or a Gold IRA.

“Tucker Carlson Tonight – Second Largest Bank Failure”
Source: Fox News
Date: Mar 10, 2023
Link to the video: https://www.foxnews.com/video/shows/tucker-carlson-tonight

• Social Security recipients may by surprised with higher taxes this year
• The income threshold determining your tax burden hasn’t been raised in decades
• Beneficiaries can adopt strategies to reduce or avoid stealth taxes on their Social Security

Social Security Benefits Exposed to Higher Taxes

Some retirees could be in for a shock this tax season. Social Security recipients may experience a phenomenon known as “stealth taxes” on their benefits. Taxes are going up because the government hasn’t changed the Social Security income limit since 1984.

The government changed a lot of things in response to soaring inflation. They changed federal tax brackets and contribution limits for retirement accounts. The government also adjusted the size of the standard deduction. In addition, they raised the Social Security cost-of-living adjustment.

One thing they didn’t change was how much money you can earn before having to pay taxes on your benefits. The low-income thresholds are resulting in more and more seniors paying higher taxes.

Here’s how it works: depending on your income, up to 85% of your Social Security benefits can be taxed. The percentage of all tax returns with taxable Social Security benefits grew to 33% in 2017 from 7.4% in 1999. The Congressional Budget Office predicts that it will grow to more than 50% by 2046. This is a troubling trend for many seniors. They view it as discriminatory double taxation.1

Seniors are pushing for the income thresholds to be adjusted for inflation. Indexing the threshold to inflation would greatly reduce the number of people owing extra taxes. In fact, 58% of seniors are in favor of getting rid of the tax altogether. Social Security overhaul is particularly difficult because of a divided Congress. Any overhaul of Social Security needs bipartisan support.2

The SECURE 2.0 Act (SA 2.0) addressed issues around retirement. But it had unintended consequences. For example, SA 2.0 raises the age at which required minimum distributions (RMDs) begin from 72 to 73 in 2023. Advisors consider this a stealth tax increase. Retirees now have almost five more years of growth subject to taxation. This can potentially impact Social Security and Medicare costs.3

Planning for Taxes

Planning can address potential tax implications. SA 2.0 provides more catch-up provisions for those between the ages of 60 and 63. You can make a catch-up contribution of $10,000 to an employer-sponsored retirement plan starting in 2024. Be warned though. Catch-up contributions for higher earners can be forced into a Roth 401k. This contribution would be taxable income.

Adjusting withholdings can help reduce tax bills. Beneficiaries can consider having at least 10% withheld, or perhaps 12%. Relying on income sources such as traditional IRAs or 401(k)s may help delay claiming Social Security benefits. This can result in higher benefits for the rest of a retirees’ life.4

Stealth taxes on Social Security benefits are a growing concern for seniors. Inflation is already making life for retirees more difficult. And a divided Congress means there is little chance of the income thresholds changing anytime soon. Retirees can plan for potential tax implications. Advisors suggest moving funds into a Roth IRA so withdrawals aren’t subject to taxes. A Gold Roth IRA combines tax advantages with the wealth protection benefits of precious metals. Contact us at 800-462-0071 to learn more about how you can protect your retirement.

Notes:
1. https://www.usatoday.com/story/money/taxes/2023/03/16/unadjusted-inflation-taxes-social-security-hurting-seniors/11465773002/
2. https://www.usatoday.com/story/money/taxes/2023/03/16/unadjusted-inflation-taxes-social-security-hurting-seniors/11465773002/
3. https://www.advisorperspectives.com/articles/2023/02/20/beware-of-stealth-tax-increases-in-secure-2-0
4. https://www.cnbc.com/2023/04/05/social-security-benefit-income-may-lead-to-a-stealth-tax.html#:~:text=Not%20moving%20the%20brackets%20or,stealth%20tax%2C%E2%80%9D%20Freitag%20said.