These 3 Tax Strategies Could Help Your Retirement Strategy Creative Retirement Planning

Have you been considering the impact taxes will have on your retirement savings? Have you been strategic in managing the effect taxes may have on your financial future? If you answered no to either of these questions, you may want to take a look at the following tax planning ideas.

  1. Consider a Roth IRA

You make contributions to a Roth IRA with after-tax dollars. So, when you withdraw from a Roth IRA, you don’t have to pay taxes on those withdrawals. There are various rules about when you can withdraw from a Roth IRA, and there are some limitations to contributions, but a Roth IRA might be a good option if you expect that you are currently in a lower tax bracket than you will be when you retire.[1]

  1. Tax-Advantaged Investments

Certain investment products can have tax benefits depending on how you use them. Some types of real estate may be tax-advantaged. Annuities can come with tax advantages. In addition, municipal bonds may also come with tax advantages. So, make sure you ask your advisor about some tax-efficient strategies before finalizing your investments.[1][2][3]

  1. Charitable Giving

Did you know that giving money to charity can help you to reduce your tax burden? You will have to itemize your income tax, but if you do, it’s possible to reduce your tax burden if you strategize your charitable gifts with your taxes.[3]

Conclusion: If you’ve ever wondered what you can do to reduce your tax burden, we’re just scratching the surface. There may be ways that insurance can provide you with tax-efficient funds to help cover your costs and reduce your taxable income. However, it takes a well-planned process and a comprehensive understanding of your financial options to make sure you make the most of the tools available to you.

If you think you’ve been paying too much in taxes or are worried you might in the future, now is a great time to reach out to a financial professional. They can help you uncover a complete picture of your financial situation, illuminate key strategies that may work best for you, and offer their vigilance and guidance throughout your financial journey. So, reach out to us today for a complimentary review of your finances to get started.

 

Source:
The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or ant consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

Investment advisory and financial planning services are offered through Simplicity Wealth, LLC, an SEC-registered investment adviser. SEC registration does not constitute an endorsement of the firm nor does it indicate that the adviser has attained a particular level of skill or ability. Insurance, Consulting and Education services offered through Creative Retirement Planning. Creative Retirement Planning is a separate and unaffiliated entity from Simplicity Wealth.