Defer capital gains tax by letting investments compound and withdrawing in retirement when you're in a lower tax bracket. The speaker compares tax rates on different withdrawal amounts, showing how retirees often pay less than they would have during peak earning years.
Around 55–57.
£50,000 taken from a larger £150,000 need (example).
50% (speaker’s anecdote).
So rather than pay capital gains tax now, the government is going to contribute to my future by allowing me to keep all the money, allow it to compound in the stock market, allow me to invest it myself, allow me to invest it in commercial real estate or stock, stocks and bonds. And it grows. And by the time I'm hitting basically 55, 57, I want to draw it out. The government will not tax me at capital gains, they will tax me as income. The implication of that is that if I withdraw only 12,000, 570 in a whole tax year because I have other income, the only tax I'm going to have to pay is 0 pounds. So basically, this is how to work with the system, not letting the system to work against you. But imagine if you needed a bit more money, £150,000, then you can take up £50,000 and, and then your tax would be 20%. But remember, if you had paid tax on it while you were working as a consultant or registrar, or even a nurse, I think a nurse reached out to me on Instagram, he was paying 50% tax, so you would have had to pay 40% on that. But now you're able to take it after it has grown and compounded over the years, you're able to take it at even a lesser tax rate.
