5 Tips to Minimize Your Taxes in Retirement
The July 15 extended tax filing deadline just passed. While it might seem early, now is the right time for you to rethink the impact of taxes when planning for your retirement.
We all know that the sooner you begin saving for retirement, the more you will benefit from the power of compounding. And the sooner you prepare for the impact of taxes in retirement, the more likely you’ll be to generate more income for more years.
More than a third of current retirees (35%) did not consider how taxes would affect their retirement income when planning for retirement, according to the Nationwide Retirement Institute’s Tax-Efficient Retirement Income Study. And many express regrets. Roughly one-third wish they had better prepared for paying taxes in retirement — and roughly one-fourth believe they’ve paid several thousand more than they expected.
The Ground Rules
To minimize taxes in retirement, and generate more retirement income, it’s important to know the tax treatment of your different income sources in retirement. How those
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