As COVID-19 rages in full bloom, retirees seriously need to factor in taxes. After all, it’s not what you make it’s what you keep that matters. a $1,000,000 IRA sounds great until half of it (or more) goes to pay Uncle Sam, and your million dollar living expenses that you diligently set aside dwindles to half of that. Don’t foresee this happening? As a country, we officially exceeded the highest Debt to GDP ratio we’ve ever experienced in the year 2020. During what period did we as a country incur higher debts? You guessed it, during World War II. One very important fact which many of us forget is that in order to rebalance the debt scales after WWII, our income taxes went through the roof! The top federal income tax bracket in 1944 for individuals earning $200,000 or more, was an astonishing 94.9%. This is the exact reason why a famous actor of the era, Ronald Reagon of California, never filmed more than two films in a single year as he earned roughly $100,000 per film, and if Ronald Reagan were too exceed $200,000 in annual income by starring in three films in the same year, he would’ve paid 94% federal income tax in addition to paying California’s high state income tax which would’ve left (President) Reagon with very little money to show for the year. Fast forward to 1970, the top federal income tax bracket for individuals earning $200,000 or more in annual income was still over 70%. Retirees today must be cognizant of the corrosive effects that higher income taxes have on wealth given our current crisis. It is critical for retirees to know which bucket of money to pull from and when, else decades of diligient savings could be nothing more than a duck wading in water.