In this episode of the One of a Kind Financial Show Daily, host Mike Milligan and co‑host Gary Nolan explain why the IRS acts as a "silent partner" in retirement accounts and why taxes are the biggest, guaranteed risk retirees face. They describe how required minimum distributions (RMDs) force the government to claim a share of tax‑deferred savings, and how the SECURE Act limits heirs to a 10‑year distribution window, creating a potential tax burden for families. The hosts advocate for tax diversification—spreading assets across taxable, tax‑deferred, and tax‑free buckets—to give retirees flexibility and reduce future tax exposure. They introduce the concept of the "tax torpedo," a phase‑in of Social Security benefits into taxable income that can sharply increase marginal tax rates. Proactive tax planning is presented as a way to protect legacy goals, shift the mindset from short‑term avoidance to long‑term strategy, and ultimately shave 4‑8 % off a lifetime’s tax bill. Throughout, they promote their One of a Kind Financial Plan, encourage listeners to schedule a consultation via phone or text, and provide required compliance disclosures.
Chapters
Be one of a kind with Mike's Plan.
It's the One of a Kind Financial Show Daily, and I'm your host, Mike Milligan. It's Wednesday, April 22nd. We're exactly one week past tax filing deadline for federal returns, and I want to illustrate something to you. If you listen to the One of a Kind Financial Show Daily, you know that last week I did a whole analysis of the usdebtclock.org. And I talked about the amount of debt per taxpayer that is owed, the amount of debt per U.S. citizen that's owed against our debt. But in those conversations, I said something I want to be very clear on: the IRS is the largest silent partner in your retirement. Up until they force distributions of your accounts, they're just there looking looking at the benefit of the growth in your plans, your traditional IRAs, your 401s, your Thrift Savings Plans, your 403s, your 457s, and they're starting to calculate the amount of tax they're going to be able to get off that in the future. And with debt continuing to mount in the United States, with Congress having the sole authority to be able to implement higher tax rates in the future when forced distributions begin, Now is the time to start thinking about how to reduce your silent partner's interest in your retirement. Gary and I talked about that on the One of a Kind Financial Show over this past weekend. Enjoy this segment. And as always, let me help you build a one-of-a-kind financial plan for your one-of-a-kind life.
All seriousness aside here, we're talking about taxings, about taxes. It's not just what you earn in retirement. It's about what you keep. When people think about retirement risks, they think about the market. One of the most predictable, often misunderstood risks is taxes. And unlike the market, taxes are guaranteed. So why are taxes considered one of the biggest risks in retirement today, Mike?
Well, in my book, The One of a Kind Financial Plan, we uncover that the fact that taxes are the biggest expense you have in your life. The other— some other projects that I'm working on, I'm working on another project called The Partner You Unknowingly Chose. And that book is how you have unknowingly chose to be with the IRS when you started putting money in IRAs and 401s. They are that silent partner. They get to make the decision on when they can take their share out. It's called a required minimum distribution. When your beneficiaries inherit the money, They only give them 10 years to take it out. Because with retirees building the majority of their assets in their savings and tax-deferred accounts like 401s and IRAs, every dollar withdrawn in the future is taxable. As RMDs begin, that tax exposure increases, often at the same time that Social Security and other income sources kick in. So that nest egg you thought was 100% with yours has that silent partner that you unknowingly chose.
Yep. It's Uncle Sam. He's your silent partner. So, how can tax diversification improve retirement outcomes, Mike?
So, having assets across taxable, tax-deferred, and tax-free buckets give retirement— give retirees flexibility. We always talk about this term diversification in terms of stocks and bonds. Or stocks and bonds and annuities. And most people know you don't put all of your eggs in one basket, because if the basket falls, then you get a bunch of broken eggs. Unfortunately, what's happened is when I look at the tax diversification between taxable, tax-deferred, and tax-free, you often see numbers like 80% or 85% in tax-deferred, a smaller amount like 15% in taxable and maybe like 4% to 5% in tax-free. And folks, we got to, we got to make retirement better for our listeners. And one of the ways we make it better is we create a better tax-deferred portfolio for the rest of your life.
The phone number is 800-748-1838. The reason I give you the phone number, because I want you to get on Mike's calendar all set up with that comprehensive plan. All the things we're talking about today, Mike and the team can help you with. You could also text the word ideas to 600-700. That's 800-748-1838, or text the word ideas to 600-700. The show is the One of a Kind Financial Show with Mike Milligan. I'm Gary Nolan, your host, as we continue on with segment 3. So what is a tax torpedo and why should retirees be aware of it, Mike?
Um, tax torpedo is a great term that's been coined on YouTube. And it refers to the way Social Security benefits become taxable as income rises. Effectively, it creates a higher marginal tax rate than expected. It catches many retirees off guard because it's not a standard bracket, it's a phase-in bracket. That means small increases in income can lead to disproportionately higher taxes. So when building a retirement income strategy, We look for these hidden impacts that are out there in the tax code and make you aware of them before they actually happen.
So how does proactive tax planning impact legacy and family goals?
Well, I mean, of all my listeners that listen to us on a weekly basis, many of them retired because I talk to you and I want to talk to more of you. But, you know, as a retiree, taxes don't stop when you retire. They extend into estate planning. Heirs inheriting traditional IRAs often face compressed distribution timelines because of the SECURE Act. That, and that creates a larger tax burden than mom and dad really wanted you to have. But strategic planning today can reduce that impact tomorrow. So tax planning isn't just about your lifetime, but it's really about your family's future as well.
What mind shift helps retirees approach taxes more effectively?
It's shifting from avoidance to strategy. Instead of asking, how do I pay less this year? The question becomes, how do I pay less over time? That long-term view changes everything from withdrawal strategies to investment decisions. Isn't the difference between reacting annually or being intentional worth a phone call today, folks? Because that's what we do. We will help you be intentional about how you handle your money so that you ultimately keep more for you and your family.
Yeah. Tell us about the One of a Kind Financial Plan.
Guys, we've talked about taxes a lot so far on the show, and they're just not a one-time event that happens when you file your tax return. Taxes are a lifelong expense, the largest expense you'll ever have in your life. The One of a Kind Financial Plan will address that, helping you to shave off between Between 4% and 8% of taxes that you can then put back into your family, creating a better tax diversification in your portfolio, and then helping you ultimately live a life that's one of a kind. We build these Garys for our listeners because we know you're unique, but we also know if we're truthful with each other, most people only worry about taxes once a year. And it becomes a stressor. We worry about taxes daily. We help you reduce them. We help you take control of them. And for those who call in today, we're going to sit down with you and make sure that you're properly tax diversified and your investment portfolio is one that you can sleep with at night.
Yeah, absolutely. Great advice, Mike. The first step is sit down with a financial coach. Sit down with Mike and the team. If something we've been talking about resonates with you, maybe you feel the need to get a second opinion or want to make sure your plan is really aligned with your goals. Very important risk tolerance we talk about. If you don't have a plan at all, that's when you really need to pick up the phone. That phone number is 800-748-1838, 800-748-1838, or text the word ideas to 600-700.
This has been the One of a Kind Financial Show Daily with your host Mike Milligan. I am an investment advisory representative with Advisory Alpha LLC, a registered investment advisory firm with the Securities and Exchange Commission. Ideas by Mike, doing business as One Oak Financial, is an unaffiliated All opinions expressed on this, the One of a Kind Financial Show Daily, are those of me and Gary Nolan, my co-host. This is for educational purposes only. Before executing any investment or tax strategy, please consult with the appropriate professionals for both, ones that are licensed and credentialed and capable. And I'm Gary Nolan. Of working with you as a fiduciary. If you have additional questions from this show, you can reach out to us at One Oak Financial. That's the number oneoakfinancial.com. Or if you wanted to connect with me, Mike Milligan, personally, you could do so on my website, mikemilligan.com. As always, you are one of a kind.
Be one of a kind with Mike's plan. In a face shock growth, take a stand. Visibility strategy, take the lead. Transformation's yours, fulfill the need. Mike's got the way to help you rise and stay. Leadership impact you'll find in your one-of-a-kind mind. Be one of a kind. Take the flight. Mike's the guide. You'll shine bright.
