Unnecessary Taxes
The decisions you make in retirement (and before) significantly impact your lifetime tax bill. At Serious Money Ohio we like to look at a tax-dollar saved, as a dollar earned.
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It is important to pay the lowest lifetime tax bill possible. Some ways to lower your taxes are really simple to take advantage of. Some ways to lower taxes are more complex and require more analysis and consideration.
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​I am able to utilize the latest in software to review dozens of different strategies for tax reduction and then to present the results clearly. This allows you to make an informed decision in "dollars and cents".
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The pie chart below is from one page of a SAMPLE RETIREMENT INCOME PLAN for a recently retired couple. They have $1,000,000 in their nest egg. That money is split between Traditional and Roth IRAs and taxable brokerage accounts.
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Choosing how to take money out from these accounts and deciding whether to pay the tax bill on their Traditional IRAs right now are the decisions they face.
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This "sample" couple can pick and choose from accounts that are taxed differently & they have money in after-tax accounts that could be used for a Roth Conversion.
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A Roth Conversion is a strategy that can produce some significant POTENTIAL tax savings- with the risk that it depends on its tax savings on things we cannot control- including how long we live, the actual performance results achieved on our IRA accounts and future tax rates.
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How large of tax savings can be projected? Our sample report relies on an average life expectancy, historically average rates of return and no change in future tax rates and laws.
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​Our "sample" retirees above could save over $300,000 in lifetime taxes with some good planning and good luck. Their Legacy value, the amount they would leave to their beneficiaries, could also increase with this tax savings plan.
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It only makes sense to see the "numbers" for your nest egg and your situation (age, need for income, projected rates of return, feelings on taxes, etc.).
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Have you done tax planning on your nest egg? How much could you save? We can run your numbers and talk with you about your results.
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Send a message to Info@SeriousMoneyOhio.com and ask for our Tax Planning Kit. We will send you some additional valuable information and a link to see the complete Retirement Income Plan for our sample retired couple.
