By The Prepare Institute
Tax season time is upon us once again, and people everywhere are in the process of filing their taxes for the first time with the new tax code in place. Of course, everyone wants to do everything possible to reduce or eliminate taxes, especially in retirement. Fortunately, there are ways to accomplish this.
Taxes are everywhere, and unfortunately they don’t stop in retirement. There are many different types of taxes in retirement which can severely hurt your retirement plan if you do not plan properly. 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.
In summary, because of our nation’s debt issue, continued excessive spending, and the continued ‘kicking the can down the road approach,’ many people, including myself, expect tax rates to rise in the near future. I mean they have to. The current national debt is over 22 trillion dollars and rising every day. This is a problem that cannot continue on forever. At some point, something will have to be done about it, and many people and economists expect that higher tax rates will have to be part of that solution.
So, many smart people have started making moves and utilizing these tools that are available now, especially with the new tax code. They are starting to prepare for a world of higher tax rates by putting themselves in a position where it will affect them the least. This is effective tax planning. The more money you have in tax-free vehicles and the more tax efficient you are, the better off and more protected you will be.
Fortunately, there are some valuable tools and moves you can use to help minimize your tax burden legally in retirement, and become tax free or as tax efficient as possible. You just have to be aware of these tools and moves, then take action to implement them. So, let me ask you, “Are you aware of these tools and moves?” You probably have heard of a few of them, but in all probability there are some that many people may not be aware of, and/or do not fully understand how to use and implement them correctly.
To get information on the many tools and strategies that are currently available which can be implemented to help save you taxes in retirement and get you as tax efficient as possible, maybe even tax free, visit The Prepare Institute website and find an upcoming retirement education course in your area.
Content is for educational and informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.