Strongsville, Ohio – A majority of people in the US think about taxes only in the spring. However, if you have retired or are planning to retire soon, you can do many things to implement a smart and sound retirement tax strategy that will save you big bucks, helping you achieve the retirement that you want.
Nobody likes to pay taxes when working full time. However, when you reach your retirement, paying taxes is even less appealing. Therefore, if you would like to hand over less money in taxes to Uncle Sam, you can take a few steps to lower your taxable income and your tax bill.
With Skybox Financial Group, you can make sure that you do not pay more taxes than you really have to. Skybox Financial Group can help as the firm specializes in retirement planning, estate planning, and risk management. As a result, the firm tends to notice aspects that other financial advisors might not.
“At Skybox Financial Group, we find matters pertaining to taxes as well as spending plans and determine how people make mistakes that can put their retirement funds and security in jeopardy. Acting in a fiduciary capacity, we will show you established and effective strategies to lower risk while preserving your hard-earned savings. This will help you reach all your retirement goals confidently and safely. We work with both pre-retirees and retirees,” said Mr. Scott Searles, President/Financial Advisor of Skybox Financial Group.
The team at Skybox Financial Group has more than 40 years of experience and thrives on providing exceptional outcomes with exceptional client service with offices in Ohio and Florida. The company prepares a worry-Free retirement blueprint for its clients. This includes an analysis of their retirement income, taxes, risk management, investments, and estate planning. This ensures holistic planning that meets an individual’s diverse goals.
Scott has more than 28 years of experience providing financial advice and portfolio management services. He has extensive experience serving both individuals who are currently retired and those who are planning for their retirement.
Here are some strategies to lower your tax bill:
Time Your Capital Gains
Note that if you sell mutual funds or stocks that have appreciated over time, you should sell the shares that have the highest basis. This will help lower the amount of taxable gain. On the other hand, if you have mutual funds or stocks that have decreased in value, you should sell some of them and realize losses that can offset your gains, thus lowering your tax bill.
Consider Tax-exempt Investments
You might want to consider some tax-exempt investments, like municipal bonds, especially if you are in a high-income tax bracket. This is because while the rate of return is a bit lower, note that your after-tax return can be better compared to what you receive with many other investments. This is especially true after you consider the tax expense.
In contrast, if you are in the low- to mid-income levels, you will probably benefit by making investments that have a better return than attempting to avoid taxes altogether.
Save Your Tax-Deferred Income for Last
Note that if you have an IRA or some other qualified retirement plan, it is better to spend your other funds first. This will allow you to take maximum advantage of the tax deferral. However, there is only one exception to this rule.
If you are in a low tax bracket right now, and also expect that the minimum distributions from your IRA will be large at age 72 and hence taxed at a higher rate, then you should start taking distributions now in order to thin down your retirement funds. This is not true of funds in a Roth IRA, which grow tax-free, not just tax-deferred.
Open an HSA
This can benefit you if you have a high-deductible health insurance plan. Note that as long as the health insurance plan that you have meets all the IRS’s guidelines, you can open a health savings account, and that is one of the best savings deals around.
About Skybox Financial Group
Skybox Financial Group has more than 40 years of experience working with business owners, retirees, physicians, professionals, high net worth families, and endowments using its comprehensive wealth management process. The firm knows that knowledge is power. The firm works closely with its clients to evaluate and assess the best opportunities and gets in position to reap the rewards these opportunities provide.
Investment advisory services offered through Skybox Financial Group, a Registered Investment Advisor
Company Name: Sky Box Financial Group
Contact Person: Scott Searles
Email: Send Email
Address:13022 Pearl Road, Suite 3
Country: United States