By Zoey Thompson
KISSIMMEE, FL – One of the most dreaded aspects of retirement is paying taxes on those savings that were built over a lifetime and in most cases already taxed. Respected Florida financial advisory firm, Strong Point Financial explains that there are many ways of stretching a retirement portfolio and avoiding Requirement Minimum Distributions (RMDs) from an Individual Retirement Account (IRA) or 401k.
“If you don’t need the money then the idea of a forced distribution can be a real headache,” explains Senior Advisor Chance Robinson. “That’s why we work with our clients to explain ways of not having to take money out of their accounts until they absolutely need to.”
One of the easiest ways is to roll funds from a traditional IRA or other retirement account into a Roth IRA. While this option does not lower the investor’s taxable income it does avoid having to pay taxes on the withdrawals. Another way is to limit the number of distributions by taking them early to avoid having to draw down twice. According to Robinson there are a few different approaches that can be used it just depends upon the retiree’s goals or intentions.
“Some people just hate the fact that it is the government who is collecting the money and choose to roll it into a charity,” he explains. “All of our strategies, plans, and actions are in alignment with our client’s goals. It is their money and their life so of course we allow them to steer the direction. Our job is to help them navigate the path and avoid pitfalls.”
Strong Point Financial recognizes that their clients place a high level of trust in their capabilities and takes this into consideration with every move they make. Protecting what their clients can’t afford to lose is their motto and it is applied in each and every recommendation they make. “We are a true bespoke agency,” says Robinson. “We work with individuals and we create individualized plans.”
For more information, visit their website.