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Pay the Lowest Possible Taxes on Retirement Assets

Investopedia recently quoted President of Pure Financial Advisors, Inc., Joseph Anderson in an article about saving taxes on retirement assets. The article is broken down by different suggestions for keeping the tax man at bay when filing your return. These suggestions include taking distributions now, thinking locally, considering when to take Social Security and thinking charitably.

The article explains that taking your distributions now could actually make more sense than taking them later, when you are forced to take RMDs from all of your traditional IRAs and qualified plans. Joe adds that taking a regular stream of taxable distributions also helps you to anticipate and plan for the amount of tax that you will owe. He supports this statement by saying:

“If you have assets in the three different pools of money – tax-free, taxable and tax-deferred – you have more control over your taxes. Investors can look at their tax bracket Joe circle with titleand distribute enough money out of each plan to make sure they are minimizing their tax bracket each year.”

Anderson is a big proponent of tax diversification, something he covers in meetings with clients and at the retirement courses he teaches in the community.

The bottom line is that tax planning is a key component of retirement planning. Taking control of your taxes means becoming educated and implementing a forward-looking tax strategy into your overall financial plan.

Click here to read the full article.

Article written by Mark P. Cussen, CFP®, CMFC, AFC

Source:, January 23, 2017