Planning for the future isn’t just about saving money during your working years—it’s about maximizing your income in retirement and efficiently passing on the remainder to your heirs. Where and how you save your money has a significant impact on the taxes you’ll owe when you access those savings.
Many people rely on tax-deferred accounts like 401(k)s, 403(b)s, and IRAs. However, since these accounts require you to pay income tax on both contributions and growth when withdrawn, the total tax amount over time can be surprisingly high. It’s essential to account for these future taxes and ensure your savings last throughout your lifetime. Additionally, any remaining funds will be taxed at your heirs' tax rate when passed down.
A proactive tax strategy helps you make informed decisions about your retirement assets and consider tax diversification. By balancing accounts with different tax treatments, you can reduce your tax burden and retain more of your wealth. When evaluating your retirement income, it’s crucial to focus on the after-tax amount—the portion you actually get to spend.
We work with you to develop personalized tax strategies that protect both your income and the wealth you’ve worked hard to build, helping you enjoy your retirement and secure a lasting legacy for your loved ones.
