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How A Tax Planning Strategy Today Could Help Maximize Income In Retirement

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When over 250 recent retirees were asked, in terms of expenses, what the biggest surprise was in retirement, do you know what the number one answer was? 1


While respondents overestimated the costs of healthcare in retirement, they tended to underestimate the expense of taxes.

And get this - "Despite the significant impact that taxes have on respondents’ income, a surprising portion of the retirees were unfamiliar with the specifics of their tax status."

If you've been working for 40+ years, there is a VERY high chance that you've had the "pleasure" to pay your share of taxes. So why is it such a surprise to recent retirees as to how much they end up paying in taxes when they enter retirement?

Because they didn't create a tax planning strategy to help minimize their taxable income in retirement.

It's been said before, but there's a not-so-silent "partner" on your retirement accounts - Uncle Sam.


So, in this episode of After The Paycheck, Ryan and Adam discuss reasons why taking the time to go over your tax planning situation NOW could help maximize your income in retirement, and what your next steps should be:

  • You might think you will be in a lower tax bracket in retirement, but that might not be the case if you're just withdrawing from your retirement accounts in a disorderly fashion or order.

  • Tax laws change - sometimes the devil you know is better than the devil you don't. Tax rates MAY go up in the future, especially since we are at historic lows and we have a rising national debt. So if you are a few years away from retirement, how can you leverage today's low tax rates to protect your income in retirement?

  • Why it is beneficial for you to plan out today what accounts your streams of income (SS, 401k withdrawals, Roth, cash-value life insurance, etc.) will be for 2024 (& beyond)



As part of our 365 Retirement Planning Process, we invested in software to help make the financial planning process more efficient, while creating more value for every client. Click here to learn how you can have a complimentary Tax Report created just for you.



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