Happy holidays – give yourself the gift of tax savings
As we head into the holiday season and New Years it can pay big dividends to spend a little time seeing if any year end moves can help you save a lot on taxes or improve your financial situation.
This month I asked people in our community and on our team for their top end of year retirement and tax planning tips. Here they are:
Build a plan
This simple step can help you get organized, see what your levers are and make smart decisions today and in future years. In a few minutes you can build a plan that lets you:
- See your net worth today and over time.
- Build a projection of what your retirement income will be and what drives it (such as Social Security, part time work, any pension, Required Minimum Distributions (RMDs).
- Project your expenses based on your current lifestyle, future moves, healthcare and taxes today and into the future.
- Think through Social Security and Medicare claiming strategies.
- Explore “What If” scenarios – for example what happens if you retire at 60 vs 65, go part time at 55, move abroad for a few years or do a series of Roth conversions to minimize taxes.
- Make smart choices around the things you can control (savings, investing, when you retire, where you live) and understanding your options to manage the risks you can’t control (inflation, market returns and longevity).
If you want to get started on your own plan you can check out this new free retirement planning tool.
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