These 3 Tax Strategies Could Help Your Retirement Strategy Epstein & White

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 help 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.

 

Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. Investing involves risk, including the possible loss of principal. Diversification and asset allocation does not ensure a profit or guarantee against loss. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.