Tax Planning

Taxes in Retirement Webinar Replay*

While each client’s situation and goals are specific, we use a distinct 3 bucket strategy with a goal of helping clients to address their taxes as they approach and transition into retirement. An effective tax planning strategy can have a major impact on your long term wealth and the earlier that this strategy gets applied, the more effective it can be at potentially reducing taxes when you retire.

The Taxable Bucket

The Tax-Deferred Bucket

The Tax-Free Bucket

Most investors get to retirement with the vast majority of their assets in the taxable and tax-deferred buckets which can create a huge tax burden when they begin to draw on their assets. We help our clients to balance these 3 buckets so that they can keep more of what they have saved. The below video gives some insight into how tax efficient investing and distribution strategies can help you to keep more of your hard earned dollars in retirement:

*This presentation is for informational purposes only and is not meant as investment advice or a recommendation to engage in any investment or financial strategy. Please consult with a professional regarding your personal situation. Investing involves risk and the potential to lose principal. Any opinions expressed in this presentation are those of the speaker. Any names of webinar participants have been changed to preserve anonymity. 

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.  Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Tailored Cents and LPL Financial do not offer tax or legal advice or services. We suggest that you discuss your specific situation with a qualified tax or legal advisor.