No one wants to spend their entire life working to have their retirement plans altered by high taxes. Tax planning can help you manage the impact of taxes on your financial efforts and make your money last throughout retirement. Alloy Wealth Management will work with you to customize a tax strategy that will allow you to save and invest in a tax-efficient way and build a nest egg that will support your retirement lifestyle and care for your family when you’re gone. Our primary goal during your tax planning session, will be to keep you in the lowest tax bracket possible, and one way to do that would be to time out your income.
Something as simple as choosing when to sell stocks will help you save money on taxes. Depending on your income, the sale of the stocks in the current year may push you to a higher tax bracket. Delaying the sale of stocks to next year can help you remain in a lower tax bracket. We will advise you on smart investment accounts and make recommendations of changes to your portfolio. Some accounts allow you to withdraw money in retirement when you’re in a lower tax bracket, while others allow for tax-free withdrawals. Life is about balance and because of the various ways taxes can impact your financial efforts, balance is essential in tax planning.
Although North Carolina and South Carolina are very tax-friendly states for seniors, many retirees pay federal taxes on social security benefits. We will look for ways to reduce or eliminate those taxes. We know that finances can be daunting, but our fiduciary financial advisors are skilled in educating and empowering clients and enabling them to make decisions about tax planning and retirement planning with confidence. If you have questions or would like to schedule an appointment, call Alloy Wealth at 800-689-3935.