New Year’s Financial Resolutions for 2023

Dr. Harold Wong

As we approach the end of 2022, gas prices have doubled and we have 40-year highs in inflation. The first six months of 2022 were the worst the stock market has had in 40 years. As of Nov. 28, 2022, the S&P 500 Index is down 17%, and the Nasdaq Index is down almost 30% in 2022.

At the end of every year, it’s a tradition for many Americans to look back, reflect, and make New Year’s resolutions. Here are some goals and dreams that I helped my clients achieve:

More travel in retirement is the top bucket list item for Americans. A client’s lifelong dream was to visit Antarctica. She found that a 14-day trip will cost $15,000 to 27,000. No problem! Eight years ago, she had deposited $270,000 in a private pension account. In 2023 she will trigger her annual income of $27,000, guaranteed every year she is alive. She will easily be able to afford the Antarctica and other future overseas trips.

A goal of many is to earn a safer income that is also steadier than stock market dividends or bond interest. Two years ago, an 80-year-old client was able to achieve this by buying solar business equipment and leasing it out to huge food companies on a 10-year lease with a 10-year warranty that covers all repair costs. The annual depreciation allows her to pay no income tax on an income that is triple what stock market dividends or bond interest pays.

Substantially increasing retirement income is a goal of most. In 2019 a new client said that they currently spend $50,000 a year but wanted to spend $75,000 a year when they retire in seven years. They also wanted to remove 90% of their financial assets from stock market risk. A series of strategies were implemented that will generate a $120,000 annual retirement income in 2027. Also, a large Roth IRA Conversion was accomplished in 2020 without owing any federal income tax so that much of the wife’s retirement income will be tax-free for life.

Leaving a large legacy for your child is a worthy goal. In 2022 a retired widow did a $600,000 Roth IRA Conversion and had $250,000 of additional taxable income. By using advanced tax strategies, she owes $0 federal tax in 2022 and creates $2.5 million more wealth to leave to her only child.

Conclusion: What dreams and goals will you take action on in 2023?

Attend my Free Live Seminar and Supper: Thursday, Jan. 26, 2023, at Hyatt Place, 3535 W. Chandler Blvd., Chandler, AZ 85226. The seminar is from 6 to 7:30 p.m., followed by a free catered supper. The topic is “Beat Inflation by Saving Taxes and Increasing Income!”

To RSVP for the seminar or schedule a free consultation, please contact Dr. Harold Wong at 480-706-0177 or [email protected] His website is www.drharoldwong.com.

Dr. Wong earned his Ph.D. in economics at University of California/Berkeley and has appeared on over 400 TV/radio programs.