Oct 20, 2017
One of the biggest expenses people have during retirement is
taxes. Learn that you do have control over your retirement taxes
and learn how to minimize those taxes.
Main Questions Asked:
What do you think will be your biggest expense in
Why wouldn’t you want to spend some time learning how to save on
Key Lessons Learned:
The 5 Retirement Tax Traps
- Social Security: For most people, social
security is a critical foundation in their retirement planning. The
value overtime of a working couple’s combined social security could
be $800,000 or more. The amount of taxes you pay on social security
income is affected by how your money is invested in other places.
Restructuring your income and deferring taxes can make a lot of
- Not having tax diversification: We are not
talking about investment diversification. You can pick and choose
how your taxes are diversified each year according to changes in
the tax laws. There is always taxed money, tax deferred money, and
never or rarely taxed. Each individual is different, so an
individual plan can help you allocate your income in these tax
- Withdrawing money from your IRA or 401k: This
can be a trap if not planned properly. You need a strategy for
taking your money out. When you take money out, you have to pay the
IRS. You can pay less by being smart and savvy with a good
financial advisor by managing your sequence of withdrawal. Each
situation is unique, so it is key to get a customized plan for
- Not switching to a Roth IRA: This is a great
tax saving strategy, and you don’t want to miss your opportunity to
convert to a Roth IRA. With a Roth IRA, you don’t have to take
minimum required withdrawals and the money you take out is tax
free. Whether you should convert to a Roth IRA depends on what your
retirement tax bracket will be. The wealthier you are the more
sense it makes to convert to a Roth IRA.
- Not having an estate plan: This covers more
than accounts. If you don’t have an estate plan everything that you
own can be tied up in court for years plus probate taxes and fees.
Why throw your money at the government? When through good planning,
you can reduce or eliminate these taxes.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!