The Retirement Fix: Less Stress, More Success
The Retirement Fix is a monthly podcast for people seeking answers and security in retirement by CERTIFIED FINANCIAL PLANNER™ John Gigliello of the Albany Financial Group, based in Albany, NY. Throughout his 30+ years of experience in taxation, finance and academia, John takes an educational approach to address the most pressing pain-points experienced by his clients and others such as proactive tax management, retirement living & income planning, social security timing, investment management, asset protection and more.
Securities are offered through LPL Financial, member SIPC (www.SIPC.org). Investment advice is offered through Private Advisor Group, a registered investment advisor. Private Advisor Group ad Albany Financial Group are separate entities from LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.
The Retirement Fix: Less Stress, More Success
Year-End Tax Planning for Retirees: When More is Less
When it comes to paying taxes, many people think that owing as little as possible come April means they’ve beaten Uncle Sam.
Well, it’s true they may have won the battle, but with that kind of shortsighted thinking, they may not win the war, so to speak.
The goal in tax planning is not only to pay fewer taxes in any given year, but to pay as little as possible throughout your lifetime. And sometimes that means paying more now to save later.
Welcome back to The Retirement Fix, a monthly podcast for less stress and more success in your go-go retirement years.
I’m your host, John Gigliello, a CERTIFIED FINANCIAL PLANNER™ with the Albany Financial Group and I’m here to be your guide to keeping more of your hard-earned money by making smart financial decisions in retirement. This podcast is for people nearing or in retirement who want to learn more about proactive tax planning, retirement income planning, social security timing, investment management and asset preservation. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with people who are looking to make smart and responsible choices with their money.
Today I’m going to talk about year-end tax planning strategies and why sometimes paying more, not less, can be the key to long-term success.
I like to say that most people are “allergic” to pre-paying taxes, but it really does make sense for some people, in specific circumstances to consider accelerating income, and therefore pay taxes earlier than they might otherwise be due.
This is the time of year when I meet with many of my higher net worth clients for proactive tax planning. We examine their recent, current and projected future income and its tax implications. We then determine what strategies might save them tax dollars now and in the future.
Proactive tax planning is different from tax preparation and involves analysis that takes into consideration all aspects of a client’s financial picture, with the results being unique to each client and their specific situation.
Year-end tax planning accomplishes a couple of very important things.
First of all, it helps clients avoid any tax surprises in April. By understanding their current tax situation, in relation to the current tax laws, they can plan ahead for any liabilities by adjusting withholdings or making quarterly estimated payments.
But a bigger part of tax planning strategy has to do with timing income such as IRA withdrawals and Social Security benefits to take advantage of low tax rates whenever possible and that’s what I want to focus on today.
If you stick around to the end, I’ll also offer a few tax planning tips that most people should consider before year-end.
One of the services I offer high net worth retirees is proactive tax planning. We review anticipated income, from all sources, each year and employ strategies to help clients make the most of their hard-earned money. If this sounds like something from which you could benefit, reach out to us. You can find more about the services we offer at www.jgigliello.com.