Your Plan for Optimizing Your Taxes
Will you end up paying too much in taxes during retirement? That’s a common question when crafting the ideal retirement. The problem is that taxes affect so many facets of retirement that important questions often go unanswered or they are overlooked -- how taxes affect your family upon transfer of wealth, possible ways to transfer wealth but also provide assistance for long term health care, how withdrawals from Roth IRAs are taxed, and other crucial details to understand when it comes to reducing tax burdens.
Our comprehensive retirement planning process includes strategies to reduce tax liabilities, so you can save money and enjoy more benefits from your hard work.
We will take a look at:
- IRA and retirement account planning.
- An overall assessment of your taxable holdings.
- Building strategies to include tax-free or deferred cash in your particular retirement plan.
- Building strategies to determine which tax category you should draw your income from in order to reduce tax burdens.
- Discussing different ways to leverage money to leave your beneficiaries tax-free money.
- Ways to ensure tax efficiency.
- Fine-tune your retirement plan to ensure all elements of the financial plan work together in the most tax-efficient manner possible.
Ready to learn more about what we can do for your tax health during your retirement years? Schedule a meeting and we can discuss any questions you may have about retirement planning!
The Difference between Tax Planning
vs Tax Preparing?
Tax preparation, on the other hand, is the process of preparing all of the necessary documents to file for one’s tax refund. Tax preparation will ensure one’s tax documents are accurate and that all of the necessary information to avoid an audit goes into the return. We do not prepare taxes. However, we do work with trusted partners that can specialize in assisting you with filing tax returns. The goal of tax preparation is to ensure that your tax reports properly align with both federal and state requirements.
Tax preparers will sometimes provide some guidance in the form of tax planning, or they will answer specific tax planning questions you may have. However, it’s still important to seek out an established tax planner or financial consultant for this particular aspect of doing taxes.
Tax planning is the process of getting your financial standing and investments in the best possible order before you prepare and file your taxes. Typically, tax planning is done to ensure that the filer will save the most amount of money when tax season arrives. This is especially valuable for those planning or retirement or who are working on their retirement plan. Typically, tax planning occurs year-round, while tax preparation is usually a one-time service that is provided shortly before taxes are due.
Do you want to understand more about how taxes affect your retirement and ways for you to reduce tax liabilities upon retirement or transfer of wealth? Register for one of our webinars designed to help individuals between 45-65 with ways to maximize wealth distribution, minimize tax liabilities, and maximize income!
Reducing Tax Liabilities Takes a Plan
We utilize various investment techniques to ensure your managed portfolio is being properly taken advantage of throughout the year. Such as:
Investing in municipal bonds
We’ll look at different bond funds and financial factors for your account and select the right ones that will generate tax-exempt interest.
Many financial or investment firms out there will wait until the very end of the year to find tax-loss harvesting opportunities. We keep an eye on such opportunities year-round to ensure that you’ll be able to offset realized gains that may be in your account at different times throughout the year.
We’ll look into various ways to integrate your specific eligible holdings into your managed account, rather than simply selling your previous or existing investment to create a clean slate. In many scenarios, a clean slate isn’t really necessary. This process can significantly reduce tax consequences when building your investment strategy.
Managing capital gains
During the process of selling investments through your managed account, we will also usually look to sell investments that you’ve held for longer, first. This allows us to really take advantage of low long-term tax rates for capital gains, which can be valuable in the long-run for your financial security.
Tax planning involves a lot more than just advisement. We’ll also work to manage your particular income exposure that are distributed by mutual funds you may have invested in. This process is valuable because it tracks your capital gains and securities that are held by those dividends or interest sources.
Do you have a plan to minimize tax liabilities?
Schedule a meeting today so we can discuss ways to optimize your taxes so you can save more money!
Don’t let Retirement Taxes derail your retirement!
This 8-page tax guide was created for you to better understand how taxes could affect your retirement income, including:
- Separating your taxable and tax-deferred accounts
- The signs to watch for in ever-changing tax laws
- Options for tax deductions in retirement income
Ready to take
The Next Step?
For more information about any of the products and services we provide, schedule a meeting today or register to attend a seminar.