Aug 20


Aug 20

5 Pillars of Retirement — Tax Planning

The retirement you want takes careful planning. We believe there are five key pillars that help build a healthy retirement plan. One of those pillars is tax planning.

Taxes in retirement can make a huge dent in your retirement income. While you could be in the same tax bracket you’re in now when you retire, it’s also likely your income could go down in retirement even when your bills do not. You could also go up a tax bracket or two depending on how much you withdraw from your accounts in a given year.

For these reasons and more, we believe tax strategies are a necessary part of retirement planning. The tax planning pillar is different from the other four pillars because it can impact everything else in retirement planning. Taxes play into Social Security, income, health care, and estate planning. The goal is to keep as much of your hard-earned money as possible.

No doubt you’ve heard of tax-deferred accounts like an IRA or 401(k). These accounts let you delay taxes until you retire so you can build future income. By strategizing your withdrawals within a given year, you can plan for the taxes you’ll pay and work to owe as little as possible. That’s one thing Hoffman Financial Group excels at.

If you have time before you retire, another great option is a Roth or Roth IRA. These accounts are funded by after-tax dollars, meaning you’ve already paid taxes on them and you won’t have to pay again when you withdraw. These accounts are especially useful in times when income tax brackets are most likely lower than when you’ll be retiring.

One aspect of tax planning is that taxes are constantly changing. That’s why it’s important to set your desired retirement timeline and goals and then determine what tax strategies will work best for you. Hoffman Financial Group is known in Atlanta for saving our clients from paying too much in taxes and for developing solid tax strategies.

No matter what strategy you pursue, it’s important to remember that taxes are inevitable for every retiree. That’s why we believe it’s important to talk to your financial advisors about how taxes could impact your retirement. If you don’t have a strong tax strategy, it’s time to get one today.

As a well-known retirement planning firm in Atlanta, we work hard to make sure your tax planning aligns with your retirement goals and values. We never stop working for you so you can be prepared for your retirement.

5 Pillars of Retirement

To learn more about the other 4 pillars of retirement, sign up for a complimentary appointment today!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.