Any comprehensive Retirement Plan will include a strategy for addressing taxes, such as:
Assessing the taxable nature of your current holdings
Implementing a tax-deferred and/or tax-free income plan
Required Minimum Distribution planning
Avoiding IRS penalties
Leveraging qualified distribution for a tax free legacy
Nobody likes paying taxes. What can be a mere annoyance while you're working can be a major headache when you retire. That's because taxes are generally the biggest expense in retirement and retirees often need every penny of income to make ends meet while leaving enough of a nest egg to ensure that they're income will last as long as they will.
Historically, Americans are paying the lowest taxes since the 1930's. So, ask yourself this questions: Will taxes go higher or lower during your retirement years?
Unfortunately, there's no way to eliminate taxes altogether, but we can implement strategies to minimize their impact on your retirement income and your beneficiaries' inheritance.