When developing a retirement income strategy, many people forget about the impact of taxes in retirement.  Most people coming into our offices are unaware of how their Social Security benefits will be taxed.  They are not aware of how retirement taxes are affected by decisions such as;

  • when to take money out of retirement accounts
  • required minimum distributions
  • changes in filing status
  • when to pay off a mortgage.

It is crucial to coordinate these decisions.  It can result in more after-tax income.  As you near retirement it is important to do careful tax planning.  You will want to evaluate the effect of taking IRA withdrawals early and taking Social Security later versus taking Social Security early and taking IRA withdrawals later.  These decisions can make a significant difference in the amount of after-tax retirement income you have.

The amazing thing about an income strategy that incorporates taxes is that it has nothing to do with the investments you choose.  Anyone who develops income strategies based only on investment choices is making a big mistake.

Taxes Matter

Key Elements to Increased Spendable Income

Maximize Social Security
Mortgage Payoff Timing
Increase Tax-Free Income
Reduce Taxes on Social Security
Reduce RMD’s
Client Retention

Client retention* rate speaks to the level of service and the integrity of a company and ours says it loud and clear.  We believe our clients stay with us because we serve each one of them equally providing a team approach that is not equaled in the industry.

*Data based on tax client records data, 2013.