Tax Law Changes, Dividend Income & When Should You Retire?
Jul 18, 2025
The hosts dive into the latest tax legislation, breaking down crucial changes that investors must understand. They unveil the truth about dividend income and its pitfalls, emphasizing the importance of total return over mere payouts. A real-life example illustrates the potential downsides of chasing dividends. They also tackle the complexity of retirement readiness, introducing a three-question framework to help listeners determine if they're truly prepared to retire. This discussion focuses on flexibility and personalized strategies for navigating retirement income.
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Key Takeaways From The New Tax Bill
The new tax bill permanently extends current income tax rates and adjusts charitable and senior deductions.
These changes create fresh planning opportunities around charitable gifts, Roth conversions, and SALT exposure.
volunteer_activism ADVICE
Project Your Taxes Now
Run updated projections comparing your prior-year taxes to expected 2025 outcomes under the new rules.
Use those projections to plan charitable gifts, Roth conversions, and SALT-sensitive moves this year.
insights INSIGHT
Total Return Beats Dividend Focus
Total return — price appreciation plus yield — matters more than dividends alone for retirees.
You must also optimize returns after tax rather than chase raw dividend yield.
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Andy and Adam tackle two critical topics every investor should understand: the new tax legislation and why chasing dividend income might be costing you money.
Fresh off Adam's solo deep dive into the 900-page tax bill, they break down the key changes that matter most to clients. Then Andy explains why he gets fired up about dividend-focused investing strategies and shares a real client example that illustrates the problem.
Adam & Andy close out the episode with a key question around retirement: How do you know when you're ready to retire? Adam breaks down retirement readiness into three essential questions that go far beyond just having enough money saved.
Whether you're wondering if you're ready to retire or trying to understand the latest tax changes, this episode provides practical insights for making better financial decisions.
We cover:
The three biggest tax changes from the new legislation
Why dividend income isn't the same as portfolio income
The hidden costs of covered call "premium income" funds
How to create flexibility in your retirement income strategy
The three-question framework for retirement readiness: Should I, Can I, How do I retire?
Why retirement planning goes beyond just having enough money saved
⏱️ Timestamps:
(00:00) Opening discussion on tax bill complexity
(02:42) Main takeaways from the new tax legislation
(08:19) Why dividend-focused investing drives Andy crazy
(15:49) The math behind dividends vs. price appreciation
(17:12) Real example of problematic "premium income" funds
(21:09) The flexibility problem with income investing
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. Burney Company does not provide legal, tax, or accounting advice, but offers it through third parties. Before making any financial decisions, clients should consult their legal and/or tax advisors.
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