Tax Tips For Retirement

Planning for retirement is something that should happen as soon as you get your first “real” job. Having enough money in your golden years to make ends meet is easier said than done, but with a little preparation it can happen. A big part of your retirement plan should focus on taxes, what you will owe and how you can reduce your tax liability even while not working. Saving on taxes increases the amount of income at your disposal when you decide to retire from a long career.

Tips for how you can save on taxes while retiring, from NBC News, are helpful:

  • Be sure your investments are diverse. Sinking all your money in one type of investment, or solely with one company can spell disaster. The best plan is to have a good mix of moderate to less moderate risk investments
  • Increase your giving, either by donations to charity or by donating actual assets. When you donate high value assets you avoid the taxes associated with that asset, and also get a beneficial tax deduction. The more deductions you have, the lower your tax liability. This is a good way to maximize your income while reducing your tax debt.

You can also put off selling high ticket items that don’t carry a tax benefit, or wait to dip into your investments. If you are able to hang on until what the government considers the legal retirement age, you will save money on the taxes that go along with retirement account withdrawals. Planning for your retirement requires a thorough review of your financial plan. Call our office to make sure your finances are in shape and that you are on the right track for a bright financial future.

Let the professionals at Nielsen Law Group help you make sure your plan for retirement is sound. Call us today at (480) 888-7111 or submit a web request here.