Every great financial plan has a forward looking proactive tax strategy. We believe taxes are the #1 wealth eroding factors in retirement. We have found that if we can help you reduce or completely eliminate taxes in retirement your money will last longer. The problem is most financial advisors and tax professionals do not work in this area. Retirement is different and is one of the only times you can truly control your tax situation.
There are two tax systems in the United States; one for the informed and one for the uninformed. Unfortunately, the uninformed pay more taxes than the informed. We want our clients to be informed that way we can make educated decisions.
Think about your conversations with your financial advisor. When you meet with your financial advisor and they showed you how to withdraw your assets in retirement to reduce or completely eliminate your taxes on Social Security, What was their strategy?
Social Security was meant to be a tax free benefit. People pay tax on Social Security because they have disqualified themselves from receiving it tax free.
Did you know you could potentially save too much money in your 401k plan? This could ultimately make you pay more tax in retirement. We have seen many individuals save money in their IRAs and 401k plans to reduce their current income tax liabilities and unfortunately end up paying more taxes in retirement. You know you have saved too much in your IRAs and 401k plans when your future tax liability is greater than your current tax liability.
Do you know what your future tax liabilities are going to be? What strategy are you going to use to help you keep your money from unnecessary taxes.