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How to Enjoy a Tax-Free Retirement?
In the past, financial advisors may have suggested putting savings into tax-deferred products. The logic they relied on was that you needed tax breaks more during your working years and would not require as much income during retirement. They might also have predicted that since your income would be lower after you stopped working, your tax rate would also decrease. However, past experiences with taxes, the economy, and retirement have demonstrated that this kind of thinking has some serious flaws.
Why Plan for Tax-Free Retirement Income
There are three solid reasons to plan to earn tax-free retirement income:
- Unpredictable expenses: With rising costs for housing, healthcare, utilities, and many other essentials, nobody really knows how much money that they need for a comfortable retirement income.
- Unpredictable tax rates: It’s impossible to predict future tax rates, and they could increase.
- Social Security rules: If you earn too much taxable income when you collect social security, the IRS could potentially tax as much as 80 percent of that income in some cases.
If you can plan for tax-free retirement income, you obviously won’t have to worry about paying taxes on that money. This kind of income doesn’t get reported to the IRS, but it’s perfectly legal. In addition, you can also lower your tax rate on the taxable income you may receive because you can pay taxes in a lower bracket. Even if you can’t protect all of your income from taxes, you might consider protecting a share of it.
How to Plan for Lower Income Taxes in Retirement
We can explain strong financial products that can provide you with tax-free access to cash, tax-free benefits to heirs, and tax-free growth accumulation. In addition, these financial tools will guarantee your principal and past returns while providing you with market-linked growth. You will be better off if you can pay lower taxes in retirement, and we can help.