Social Security Tax Torpedo & Capital Gains Bump Zone

This video highlights two pitfalls I regularly see people falling into during retirement. The first is the Social Security tax torpedo, and the second is the capital gains bump zone.

I first provide an animated illustration to show how ordinary income and capital gains taxes interact. Then, I use this framework to illustrate these pitfalls.

NOTE: This video was featured in the New York Times. Below is a snippet from that article, but you can click this box to visit the NYT article (requires subscription).

New York Times snippet