No one is a big fan of taxes. Sure, they are used to help pay for some things you need and use, but it’s fair to say that anyone’s day would be brighter if they were sending less of their money off to the government. 

Keeping an eye on your tax situation is even more important in and around retirement as new vehicles become a part of your revenue stream. Consider whether these tax-reduction strategies could fit into your ideal financial plan while preserving more of your money:

1. Convert Accounts: If you are in a position to take on a larger current tax burden, you can roll existing accounts like a traditional 401(k) into Roth accounts. This will require taxes to be paid when contributing but will be available as tax-free withdrawals in retirement.
2. Social Security Smarts: Another tax-saving option for those with a comfortable nest egg is to determine if it could be beneficial to withhold benefits. Some people will pay tax on up to 85%¹ of their benefits, but altering income levels can significantly reduce that percentage. 
3. Utilize Investments: Everyone will have a unique investment situation that could have different tax ramifications. Long-term capital gains² are taxed at rates of 0, 15, or 20%depending on your income. Similarly, depreciation on real estate investments can offset some taxes.
4. Charitable Giving: For many, part of enjoying retirement is to share their wealth with others. Giving to qualifying organizations is a great way to leave a legacy and make sure that more of your money ends up where you want it. 

Call Consha Financial at 678-539-9518 and hear about options to provide for future health needs while staying focused on pursuing your retirement goals. 

1. https://www.bankrate.com/retirement/avoid-paying-taxes-on-social-security-income/
2. https://www.bankrate.com/investing/long-term-capital-gains-tax/ – short-term-vs-long-term

Investment advisory products and services made available through Impact Partnership Wealth, LLC (IPW), a Registered Investment Adviser. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. 

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This blog is intended for 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.