Part 3/8:

The Impact on Retirement Strategies

One striking narrative shared by Seir involves an ordinary couple who diligently contributed to their 401(k) throughout their careers, amassing a savings of approximately $1.5 million. Upon consulting with Seir, they discovered that their tax bracket in retirement would be even higher than during their working years—shifting from a 22% tax bracket while employed to a 28% bracket upon retiring.

To compound the issue, they would face Required Minimum Distributions (RMDs)—the mandatory withdrawals imposed by the government on tax-deferred accounts such as 401(k)s and Traditional IRAs. These distributions, particularly detrimental for those who do not require the funds, could lead to significant tax burdens, further reducing their retirement savings.