Tax Season

Today’s Prep:

What do you need to know when it comes to tax planning? Eric outlines the ways a tax strategy can make a big difference in your retirement plan.

Equipping Points:

‘Tis the season to think about taxes! In April as the deadline approaches, taxes are top of mind. The people who owe money are often doing them now whereas the people expecting a refund are more likely to have done them sooner.

How can you pay less in tax? If you’re working, it’s difficult. When you retire, this is the time you have the most opportunity to control how much tax you pay if you have money in the different tax buckets. Eric explains the different tax buckets we have and what it can mean for you in retirement. If have money in the different buckets and blend it, you can control how to take it out which impacts how you will be taxed.

Many people assume that taxes will be lower in retirement. It can be, but that’s not a guarantee. It depends on how you pull the money out for your retirement income. Structuring your income makes a big difference, which is why Eric works with his clients to see how they can get a better tax scenario. Most people though will not be in a lower tax bracket, so don’t assume that’s automatically the case.

Having a tax strategy can take some work, but there are ways to make it possible. Doing a holistic plan will help get you the best results possible. If you don’t have a tax strategy as a part of your current financial plan, you’re going to need one. Taxes are only going to change, and likely, moving up.

Listen to the entire episode or skip ahead using the timestamps below.

0:47 – Thinking about taxes?

5:57 – Will taxes be lower in retirement?

8:12 – How can you be strategic about your taxes?

Today’s Takeaway:

When you retire, this is the time you have the most opportunity to control how much tax you pay if you have money in the different tax buckets.”

-Eric Peterson

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

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