How to Reduce Your Taxes in Retirement

In this hour, learn how to balance your retirement spending with how much you’ve saved—and why your strategy needs to change with your situation. Joe and Al discuss how the presidential candidates are promising lower taxes and how this will affect you. You have more control over taxes in retirement than any other time in your life.

2:19 “There isn’t a cookie cutter answer to withdraw sequences, because an investment strategy will be determined by age, tax rate and taking withdrawals. In fact, it will often be a good idea to pull money from multiple account types during each year of retirement”

3:24 “When you are saving money, it doesn’t have to be nearly as complicated as it is when you are withdrawing money…the strategies that got you rich need to change to keep you rich”

7:19 “If you live into your late 80’s or 90’s, you’re going to wish you deferred your Social Security to later because you would have gotten a lot more income”

8:41 “Taxes really are one of the biggest expenses that you will have in retirement, and people don’t realize they have control over that. While we’re working, we have taxes through our salary that are withheld; we have state taxes, federal taxes, Social Security taxes, Medicare taxes, etc.”

14:40 “I would right now do everything I can to pre-pay some of the taxes out of my retirement account while tax rates are lower and the way you do that is you transfer some of those assets to a Roth IRA”

18:08 “The most important investment you can absolutely make is an investment you make in yourself”

22:31 “Our focus is to give you the information you need so you can make better decisions about your finances”

25:03 “If you’re a company that buys big amounts of machinery, then you’re hoping that this extender bill’s going to pass so you can write off all of this equipment”

30:28 “What the standard withdrawal strategy is is this: you’re depleting everything you have outside your retirement account first, then you take your required minimum distribution from the tax-deferred account”

34:58 “We have seen people save millions of dollars [in taxes] over their lifetime by employing these strategies over a number of years”