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Tax Planning Strategies

Are you saving for your retirement? While diversification is a good idea, it's also best for you to diversify when or how your savings will be taxed. Doing this can help you manage the two unknowns during your retirement.

Taxable Income
Don't just think about your retirement savings; you also need to consider your other investments, such as your pensions, social security and other sources of income. How much of this potential income will be taxable when you retire? If you don't know how this works, we recommend that you speak with a financial advisor for assistance. Our professional team at Casement Group are highly knowledgeable about retirement taxes. We can help you maximize your savings and minimize taxes.
When it comes to tax strategies of retirement or avoiding taxes on IRA withdrawals, we can help.

Tax Rate After You Retire
We can't really be certain how much our taxes will be when we retire, but it's still possible to do tax planning for retirement. With the help of a professional, we can help you strategize better so that you won't have to pay huge taxes when you retire.

Good Strategies for your Retirement Income
Growing your savings for your retirement is one thing; implementing good tax planning strategies for retirement is another. Keep in mind that the money you save in your 401(k)s and traditional IRAS is taxed when you decide to withdraw money in the future. Thankfully, there are things you can do to minimize your taxes.
It's important that you hire a financial advisor as they have a wealth of knowledge when it comes to tax planning for retirement.

Know How Much You Spend
Some people believe that they will spend less during retirement. This actually depends on your lifestyle. When you constantly travel, that means you will have to spend more money. Do your grandchildren or children depend on you? It will cost you money. Also, don't forget about your other expenses, such as your health care costs. When you have Medicare, you need to know what's covered and what you will be paying for. Once you know how much your expenses are, you can plan your withdrawals accordingly.

How Much is your Tax Bracket
It's crucial that you know this as it can help you minimize the taxes on your withdrawals. If it reaches the threshold, it means you will have to pay more taxes. You can check out the tax rate tables so you have an idea of how much the threshold is, and then you can plan accordingly.

Consider Delaying your Withdrawals
Do you really need the money? If you don't really need to pull money from your account, then hold off for as long as you can. You can still decide to let those accounts build up on a tax-deferred basis until it's time to get withdraw them.

Decide Where you Want to Settle Down
During retirement, it's just as important to consider where you plan to retire. Most retirees prefer a warmer place where everything is affordable or close to their family members. Another thing to consider in choosing a place to settle down during your retirement is much your assets will be taxed.
In some states, they don't tax Social Security. You can speak with one of our financial advisors to educate you more on tax strategies for your retirement.

Always Diversity
One of the best things you can do is to have a variety of accounts that are taxed differently. During retirement, this can give you flexibility on your withdrawals. You can choose those investments that will not tax you a fortune. Consider investing in investments that are not held in tax-deferred accounts.
Another tip is to let your tax-deferred account grow as it reduces taxable income. However, you will have to make minimum distributions if you are at least 72 years old.

Plan Ahead
You can never go wrong with planning ahead, especially when it comes to your retirement. Ensure that you have a plan in place before you retire. It would help if you had a financial advisor that you can trust with your investment money or educate you about growing your money during retirement or minimizing taxes when you retire.

Contact Casement Financial
Do you need help with your tax planning strategies? Our team at Casement Financial takes pride in our commitment to provide the best financial services to all our clients. We are highly adept with investment plans and tax strategies. Whether you need help in growing your money or how to minimize taxes during retirement, we can assist. Get in touch with us today.