Tax Efficiency in Retirement
Many people unknowingly pay more taxes than they need to during retirement. Given the likelihood of tax increases in the coming years,* it is important to proactively integrate strategies for tax efficiency into your retirement planning. This educational seminar will provide some background regarding our tax system and then discuss specific strategies to help you minimize the taxes you pay during retirement.**
We will first highlight the primary types of taxes that are relevant during retirement and how they relate to different types of accounts and investment vehicles. Then we will provide an overview of the tax system and how different taxes can be interrelated. In particular, we will present an example whereby this interdependence can more than quadruple the taxes you pay at the margin when withdrawing retirement income (spoiler: this will involve phenomena known as the Social Security tax torpedo and the capital gains bump zone).
After providing this background, we will discuss four primary strategies you can use to minimize your taxes during retirement:
- Asset location (not to be confused with asset allocation)
- Roth conversions
- Withdrawal strategies
- Charitable giving
We want you to get the most out of this presentation and invite you to share your concerns and questions before, during, and after the seminars. We will try to cover as much material and answer as many questions as we can during our time together but promise to make every effort to leave no questions unanswered.
* To be more precise, our goal is to maximize after-tax performance which is not always the same thing as minimizing taxes.
**For example, the tax cut and jobs act (TCJA) is set to expire after 2025.
FREQUENTLY ASKED QUESTIONS
- Is there a cost to attend? No. There is no cost to attend.
- Do I need to bring anything? No. You will be provided with a pen and paper to take notes.
- Will food be served? Yes. We will provide light snacks and water.
- Will there be a pitch to sell any investment or insurance products? No. The most common feedback we receive is how nice it is to attend a truly educational workshop with no sales pressure.