Taxes seem like they are everywhere, and unfortunately as we said last week, they don’t stop in retirement. The bottom line is most people hate paying taxes and want to do everything possible to minimize or eliminate them by law. Fortunately, there are ways to accomplish this.
I personally feel that tax efficiency is key in retirement planning. It can literally make a huge difference in the ultimate value of your retirement plan. And that is why in last week’s column and radio show we explained how different types of retirement assets and incomes are treated this wise. The proper understanding of that information is the first step in figuring out how to save taxes and become more tax efficient. The next step is learning and knowing specifically how to do it.
Because of our nation’s debt issue and continued excessive spending, many people including me expect tax rates to rise in the near future. If this happens, the more money you have in tax free vehicles and the more tax efficient you are, the better off you will be. Fortunately, there are some valuable tools and moves you can use and make to minimize your tax burden legally and become tax free or as tax efficient as possible. You just have to be aware tools and moves, and then take action to implement them.