Tag: Investment Advisor



Are your taxes in retirement going to be a problem?

Are your taxes in retirement going to be a problem? Have you saved for your retirement using 401(K)s and Traditional IRAs?

Not all that money is yours! Some of it belongs to the IRS. Maybe as much as twenty-five percent (25%) or more!

Will you be comfortable in retirement on just seventy-five percent (75%) of the funds in your 401(K)s & IRAs? Will you be paying taxes on your Social Security benefits?

Up to eighty-five percent (85%) of your Social Security benefit can be subject to Federal Income Taxes. Not planning for taxes in retirement is dangerous to your retirement health.

Don’t wait until you are retired to address the TAX TIME BOMB! IT WILL BE TOO LATE!

We Can Help. Call us TODAY at (435) 655-0508!



Do you own your own business and pay too much in taxes?

Do you own your own business and pay too much in taxes?

Every time we turn around there is another tax: Federal and State Income Tax, FICA Tax, Sales Tax, and on and on.

If you own your own business and your business generates at least eighty thousand dollars ($80,000) each year in taxable income and your business pays more than twenty thousand dollars a year ($20,000/year) in taxes you must read our White Paper: “Tax Planning Mistakes Small Business Owners Make”

In this FREE RESOURCE you will discover how to rent your house to your business, deduct the business expense, and not pay any taxes on the income you receive.

You will learn IRS approved techniques to deduct home office expenses so that you don’t have to worry about being audited when claiming a home office even if you have another office elsewhere.

We Can Help. Call us TODAY at (435) 655-0508!



The Impact of Inflation in Retirement

Do you Know the Silent Killer for Retirees? The medical profession refers to high blood pressure as the silent killer.

In investing, the silent killer is INFLATION. The minimum return on any retirement investment must be at least equal to inflation.

Here’s why. Suppose your retirement goal is to withdraw $90,000 per year from your IRA. To maintain your purchasing power you must adjust your withdrawal amount for the inflation factor. That means that to get $90,000 per year at an inflation rate of 3%, your withdrawal amount in year 15 would be $140,217.

Are you on track to manage inflation during your retirement? To learn more, Get our white paper “How to plan for inflation in retirement”.  (435) 655-0508



Is Tax Planning Missing In Your Retirement Planning?

Is Tax Planning missing in your Retirement Planning?

Too many retirees believe that they don’t have to do any planning in retirement. They spent years saving for their retirement and now they think they can coast. WRONG!

There are hidden tax traps waiting for the unsuspecting. For instance, If you want $75,000 per year in retirement, is that before or after taxes? If it’s after taxes, that could mean withdrawing $90,000 per year before tax.

Will your portfolio last for 35 years if you withdraw $90,000 each year adjusted for inflation? After 15 years, to keep your purchasing power of $90,000 at 3% inflation you would need to withdraw $140,217!

Contact me to get a 50% discount for my book “The Ticking Tax Time Bomb” How to Recognize & Manage Tax Traps in Retirement.   (435) 655-0508



Don’t Let Timing Ruin Your Retirement

Did you know that one of the greatest risks to your retirement portfolio can happen in the first years you retire?

The timing of when you begin withdrawing money from your investments can dramatically impact your long-term wealth. It’s called sequence-of-return risk, and the danger is very real.

When you make regular withdrawals from investments while market returns are down, your portfolio shrinks faster because the investments are worth less. If that happens early in retirement, it’s more difficult to rebuild your assets and get back on track – you could even deplete your portfolio before the good returns show up.

But there are ways to protect yourself from negative returns in the early years of your retirement, including reducing risk in your portfolio and modifying spending in down market years.

Find out more in my White Paper on How to Achieve a Successful Retirement Even if Your Portfolio Suffers Negative Returns in the early Years of Your Retirement, by calling (435) 655-0508 or visiting my website www.savinginvestors.com.



Is a Tax Free Retirement Possible?

A question we’re commonly asked is, “Is it possible to drastically reduce taxes in retirement, or even eliminate them?

It’s possible, but you must start planning before you retire.Many people don’t realize that Traditional IRAs and 401(K)s are fully taxed upon withdrawal, so the key is to diversify your retirement income.

You can do that by saving and investing in tax-advantaged and non-taxable accounts, such as a Roth IRA, while you’re still working.

Once you’re retired, it’s all about monitoring your adjusted gross income to control your tax bracket. You can limit the amount of taxable income you need to withdraw by pulling income from your tax-free accounts.

Also, by withdrawing from non-taxable accounts, instead of selling investments that trigger taxable income, you reduce the amount of your Social Security benefits subject to income tax.

To find out how you can reduce your taxes in your retirement years, call (435) 655-0508 or visit my website www.savinginvestors.com.



Are you Aware that Health Savings Accounts can be Retirement Assets?

Are you aware that Health Savings Accounts can be retirement assets?

Health Savings Accounts are used in conjunction with high deductible medical plans.

HSAs are not just for paying doctor and prescription bills. HSA contributions are deductible above the line so they reduce taxes in your earning years.

Contributions made to your account remain until withdrawn. The interest earned in the account is tax-deferred.

Once enrolled in Medicare, contributions to HSAs are not allowed BUT…

Funds left in the account can be used during retirement to pay for Medicare parts B & D with tax free money.

We Can Help. Call us TODAY at (435) 655-0508!



What are some examples of Tax Traps in Retirement Years?

What are some examples of tax traps in retirement years?

One, not understanding that eighty-five percent (85%) of your Social Security benefits can be subject to income taxes.

Two believing that there is no way to minimize taxes in retirement.

Three, withdrawing funds from different accounts in the wrong order.

Four, making a lot of taxable money within two years of the retirement age (66) or in one year during retirement.

Five, failing to understand that costs for Medicare Parts B and D are subject to increased premiums based on crossing certain Modified Adjusted Gross Income (MAGI) amounts.

Some of the increased premiums are draconian. Not understanding the tax code can be detrimental to your financial health in retirement.

We Can Help. Call us TODAY at (435) 655-0508!



Tax Planning: How to Prepare for Taxes at the End of the Year

Here are some tips to help you lessen your tax burden at the end of the year:

First, Be aware of any tax changes that will take place in the new year so you can use them to your advantage. Review your cost basis so you can make informed decisions about the sale of your assets. Realign your portfolio for the best overall after-tax return. Accelerate losses to offset gains. You can take up to a loss of $3,000 in excess of gains each year, but avoid wash sale rules. Or you may want to consider a delay in using loss carry-over if your bracket will be higher the next year. Be aware of additional taxable income available yet stay within your current tax bracket. Consider either accelerating or delaying deductions to arrive at the best tax strategy for you. Consider paying state estimated and real estate tax installments early, if it works to your advantage.

Tax and financial planning involve complex calculations, so seek a professional to maximize your overall tax strategies.



What is the Best Strategy to Withdraw Funds in Retirement?

What is the best strategy to withdraw funds in retirement?

Conventional wisdom would suggest withdrawing funds from accounts in the following order:

First, from taxable accounts. Second, from tax deferred accounts. Third, from tax free accounts. Fourth, from non-qualified accounts.

Is Conventional Wisdom always correct? Not all the time! Why?

Maximizing Social Security benefits is always the goal because it’s often the only source of income with a cost of living adjustment, thus increasing the benefit each year.

Increased benefits often translate to increased benefits for a surviving spouse.

Achieving lower taxes while postponing Social Security benefits could make withdrawing funds from tax free accounts first, not third, the best decision!

We Can Help. Call us TODAY at (435) 655-0508!