The Hidden 3.8% That Can Blindside Successful Earners

The 3.8% Tax You Didn’t Plan For (What High Earners Need to Know) In this episode of BA Podcast Guys, host Robert Lovaglio sits down with certified financial planner Austen Jacks, CFP® to break down the 3.8% Net Investment Income Tax (NIIT) — the additional tax that can apply once your income crosses the $200,000 threshold. Many high earners focus on capital gains rates, dividends, and overall investment returns, but fewer people realize there may be an additional 3.8% tax layered on top of those gains. Austen explains who it applies to, how the $200K threshold works, how modified adjusted gross income factors in, and why certain investors — especially business owners and executives — need to pay attention. They also discuss practical planning considerations, including how selling private company stock, capital gains timing, and investment income structure can impact your total tax liability. If you’re a high-income earner, investor, or someone approaching that $200K mark, this conversation could save you from an unexpected tax surprise. This podcast is for educational purposes only. Always consult your CPA or financial advisor before making financial decisions. Subscribe to BA Podcast Guys for more conversations on wealth building, tax strategy, investing, and financial planning. ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ Timestamps: 00:00 – When Success Changes Your Taxes 00:31 – Podcast Introduction 01:00 – Question of the Day 01:21 – What Is Net Investment Income Tax? 02:13 – Why It’s Hard to Plan For 03:22 – Example: How the 3.8% Applies 04:43 – Why the Extra 4% Hurts 05:08 – Can You Avoid the Tax? 06:54 – Key Takeaways and Summary ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 📈 Welcome to Best Advice Podcast Guys! We bring you expert financial advice, success stories, and insights from top industry leaders. Hosted by Rob Lovaglio and a panel of experienced financial professionals—including Frank Lovaglio, RFC®, David Allen, CFP®, Mitchell Walk, AAMS®, Austen Jacks, CFP®, and Mitch Allen, CFP®—we break down the strategies that drive wealth, success, and financial freedom. ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🎧 Listen & Subscribe: 🔹 Apple Podcasts: https://podcasts.apple.com/us/podcast... 🔹 Spotify: https://open.spotify.com/show/2xscesU... 🔹 All Platforms: https://bestadvicepodcastguys.com ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🤝 Get Personalized Financial Guidance: 📌 Learn about the SFM process: https://www.sfmadvisorgroup.com/ 📌 Schedule a consultation with our award-winning team 👉 https://go.oncehub.com/SecurityFinanc... 🔔 Subscribe for More Expert Insights:    / @bapodrob   ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ Related Phrases Financial advice from industry experts, smart investing strategies for beginners, market updates and economic insights, how to grow wealth and manage money, the best financial podcast for investors, breaking down stock market trends, expert tips for financial freedom, understanding taxes tariffs and trade policies, wealth-building secrets from financial advisors, how to protect your investments in a volatile market Related Hashtags #financepodcast #investingtips #stocktax #marketnews #stockmarket #wealthbuilding #financialfreedom #moneymatters #tradingstrategies #economicnews #financialplanning #securityfinancialmanagement