Taxes are the variable nobody likes to talk about, but while in retirement, you have much more control than you did during your working years. You need to shift your mindset while in retirement, because you may be losing a lot of money from paying too much taxes.
In your working years, regarding your asset allocation, you were taught to focus almost exclusively on risk. You probably filled out risk evaluation surveys for your 401k and other investments. But there’s a 2nd variable not talked about enough, and that variable is time.
The first thing everybody needs to understand when it comes towards retirement is “Where is your money going to come from?” It’s not the same as when you were working. In your working years you had a paycheck. Now you have to replace that paycheck. You need to understand where your dollars are going to come from so that you can live your life.
Proposed tax law changes are being sold to us like a timeshare. They’re saying these changes will only impact the wealthy and not the average American. We’re being told that we’re going to receive all these extra benefits from the changes.
We are in a year of presidential and congressional transition which always brings with it changes to tax laws. Now more than ever, taxes are going to be a very important factor when it comes towards your retirement plan.
Capital gains taxes do not come from your Traditional IRA, Roth IRA, or 401k. They come from what we call “non-qualified accounts,” and you need to be aware how proposed capital gains tax rate changes will affect your legacy.
As a retiree, you may have more control over the taxes you pay on your retirement income than you realize. With a variety of retirement income accounts and proper planning, you may be able to reduce the amount you pay each year in taxes. Listen to Josh’s video below to learn more.
Estate planning involves creating a strategy for how your assets will be handled when you’re no longer able to handle them. Listen to Josh discuss the importance of wills, trusts and beneficiaries in creating an estate plan.
A tax refund means you overpaid your tax bill. Owing taxes at the end of the year means you underpaid. The best question to ask is, how do I pay less in taxes every year? Listen to Josh’s video below to learn why retirees might be the best poised to ask this question.
Along with a new president comes new rules and laws. 2018 brought us a new tax law with mostly lower rates, but it is set to expire in 2025. What should you be thinking about now? In the video below, Josh discusses what retirees especially need to be thinking about now.
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