You may not realize it but taxes could be a much larger expense in retirement than most people might think. Taxes become such a big deal especially into retirement years. While saving money in a 401k or a IRA a pension is building and you are receiving a tax break, but you are deferring taxes on your savings that can hit like a ton of bricks. When you got to pay the piper all those taxes will be taken out and that even includes your investment accounts.
You need to be thinking about Social Security as you get to retirement, but the key is to start the planning now as it relates to all taxes. What most people don’t realize is they have more control over taxes in retirement years than at any other time.
When working those there isn’t the same amount of control with automatic deductions in your check going to social security. When you retire, the golden years (from 59 1/2 to 70 ½ and a half when you have to start paying required minimum distributions) because that’s when you get to keep the gold.
If done right there’s this big difference between tax planning and tax preparation. When preparing taxes the focus is on what happened last year. There’s not much to change. When focused on planning, the focus is to look out 10, 20, even 30 years and making huge differences as to how taxes are play out in retirement years
A recent client, a couple, who had worked their whole lives, years of putting away money
into a 401k, trying to do their best to focus on Social Security. They were able to look at everything in their pension and were able to save $269,260 in taxes over their lifetime because strategies looking into the future. as we talked
BOSS Retirement Solutions has now has six offices 20 minutes away all along the Wasatch Front so it’s easy to meet with an advisor. Whether you’ve been saving money in a 401k, an IRA, or brokerage accounts and have saved at least $200,000 for retirement give us a call. For the first 10 callers the tax analysis is absolutely free. Call 801-701-8881 or visit BOSSRetirement.com
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