Retirement Tax Forecast

We may not know what tax legislation will look like on the exact date you retire, but there is great value in forecasting what we do know. As one example among many, if you are required to take minimum distributions from retirement accounts at age 72, you will likely face a tax balloon. We can plan to minimize the effects of those distributions with a retirement tax forecast.

Tax Forward Income Planning

Knowing that your income streams are not all equal in the eyes of the tax-man, it’s essential to know when you should start drawing from each and how much to withdraw. If one additional withdrawal from the wrong place at the wrong time could mean a tax rate of 49.95%, planning becomes essential.

Tax Deferral

Deferring tax on earnings (interest, dividends, or capital gains) until retirement can create substantial returns. Instead of premature taxation on an annual level, which could erode annual returns, the taxation is triggered only upon withdrawal. In many cases, the tax rate in retirement will be lower, making tax deferral attractive.

Small Business Planning

Taxation is usually small businesses’ most significant expense. Savvy business owners look at lowering taxes as a way of increasing income. Some of the other challenges facing small business is protecting the business from the loss of and rewarding key employees and planning for an exit strategy. We work on an individualized level along with a team of CPA’s and attorneys to assist our business clients with a strategic plan.

Tax-Free Bonds

Bonds issued by municipalities will commonly tax-free at the federal level. The tax-exempt nature of their interest can make them an attractive investment held in non-retirement accounts as their interest will not be taxed on an annual basis. Liquidity, low volatility, and high credit quality can make municipal bonds a great play in the right scenario.

The first step toward achieving your retirement goals is having a plan…