One of the unpleasant truths about retirement is that there are still taxes in retirement that can make up the bulk of your expenditures. It is possible to plan effectively to maximize the amount of income you keep. A good strategy will reduce the amount of tax exposure you have, and planning should begin well before retirement. Some financial advisers do not focus on the tax aspect of retirement, and focus solely on the gains. It is worth getting an informed opinion on tax opportunities to perfect your retirement tactics.
Key Takeaways:
- Many individuals don’t plan for the effects of taxes on their retirement income.
- Proper planning can save save thousands of dollars by using deductions, tax advantages to maximize retirement income.
- A retirement specialist can help build and preserve retirement funds. A second opinion can help clarify the best strategy.
“Some believe that tax rates will increase thanks to burgeoning budget deficits and the high cost of popular social programs, such as Social Security, Medicare and Medicaid.”