Tax Planning
When it comes to taxes everyone should pay their bill, but there is no reason to LEAVE A TIP! Your tax exposure will change throughout retirement, and you need a strategy that anticipates these shifts. Overpaying taxes can create inefficiencies in your retirement plan, and our tax planning process is designed to prevent that. We consider not only traditional taxes but also potential taxes, surcharges, and penalties related to Social Security, Medicare, and other retirement income sources.
In the accumulation phase (when you’re saving for retirement), you may benefit from deductions like child tax credits, mortgage interest, and tax-free employer-paid medical insurance, while making contributions to tax-deferred accounts like a 401(k). However, in the distribution phase (when you’re spending your retirement savings), the landscape changes: Social Security benefits, required minimum distributions (RMDs), and paying for Medicare and long-term care all come into play.
At Worth Asset Management, we help you craft a tax strategy that anticipates how and when you’ll tap into your assets to cover personal expenses, while understanding the range of taxes you’ll face at various stages of retirement. Our goal is for you to pay the lowest tax rate possible, making your retirement as smooth as possible.
Pre-Retirement Tax Planning: Preparing for a Tax-Efficient Retirement
Before retirement, it’s vital to understand your “after-tax” savings. Many underestimate taxes’ impact on retirement income, leading to surprises later. Our pre-retirement tax planning provides a clear view of your financial future. By assessing your current assets and income sources, we help you build a tax-efficient strategy that maximizes your savings so you are fully prepared for the next chapter of your life.
Post-Retirement Tax Planning: Navigating the Complexities of Retirement Taxes
Once you enter retirement, the tax rules change—and they often become more complex. Many retirees end up overpaying on their taxes simply because they don’t understand the intricacies of the tax code as it applies to retirement. We at Worth Asset Management recognize these challenges and are committed to helping you avoid unnecessary tax burdens. Social Security and Medicare come with their own set of tax traps that require careful planning. Additionally, managing how and when you draw from taxable, tax-deferred, and tax-free assets is key to maintaining efficient income and staying within optimal tax brackets.
Comprehensive Tax Strategy for Every Stage of Retirement
We at Worth Asset Management believe effective tax planning is essential, especially as you transition into retirement. We navigate the complex tax landscape with proactive strategies to help you avoid pitfalls and preserve more of your hard-earned savings.