Retirement
Tax-smart tips for retirees
Wednesday, November 19, 2014 - 02:47
Taxes can take a big bite out of your retirement nest egg. Here are strategies on using Roth IRAs, strategically drawing down your 401(k), taking Social Security and cutting capital gains.
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And has no problem giving some of his retirement money to Uncle Sam. Even though as an accountant and tax accountant for awhile. I'm always happy to pay taxes. That's been going through your reason this or we saw a movie. You keep. Financial advisors say if you don't feel as generous as again he should probably hire someone like him to help. Working with a quality CP AA. Can relieve so much stress I think a lot of times people may feel that well I'm retired now I've got time to do it on my out. But I find that having proper tax management and expectations. Around the timing in the flow. Can make a huge difference one thing you might learn that check you get from the federal government each month comes with strings attached. People have a notion that Social Security is money that they that they paid into a system. As a form of attacks and that they'll be receiving a tax free and about half the cases that's not true. As much as 85% can be taxable income to. Another thing to watch out for a trading costs some carries get more involved in the markets talking with the broker making more traits. If you're doing this in the taxable account commission think capital gains taxes mean need you to reconsider. As people approach retirement and really wake up to you the high implicit cost in their taxable accounts of more trading oriented strategies. Implications that work quite as obvious when you had an income stream coming and and are really stark. When the outcome music stops. The science treating there is the issue of how you make withdrawals from your counts especially. If your taxable and tax deferred ones. Let's say you spent all of your taxable money you don't wanna take distributions from your diary until you reach seventeen patsy spent most of your money from your other counts. Well once you reach sending half. Uncle Sam's gonna once you start taking their money and those distributions might then be a lot higher and you might be pushed up into higher tax bracket so we try to talk to people about. It might make sense to take money from your higher rates prior to seven in half if you have room within your tax bracket to do so seem potentially don't have very large distributions we hire a whenever those aren't these two candidates seven in half. You really some of the tax bite I started Roth IRA earlier in life withdraw its rocket attacks free in most cases. And there are no required distributions. Of course it to pay taxes on the money before you make contributions. And one important thing to keep in mind paying taxes upfront rather than later isn't beneficial if you expected in the lower tax bracket in retirement. For more tips watch our series on the retirement channel of Reuters dot com. I'm young this is writers.
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Tax-smart tips for retirees
Wednesday, November 19, 2014 - 02:47
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