You have saved and accumulated wealth. You have worked hard to preserve that wealth. But when you begin withdrawing and using your savings, taxes can take a big bite.  Income taxes, capital gains taxes, net investment income tax, and surcharges on Medicare Parts B & D can all reduce what you ultimately have to spend and/or pass on to your loved ones. Developing a comprehensive tax strategy before and during the withdrawal phase of retirement can help you keep more of what you have saved.

Conventional wisdom tells investors to withdrawal from taxable accounts until they are depleted, then tax deferred until they are depleted, and then finally from tax-free accounts. But the tax code is complex, and research shows that conventional wisdom is often not the optimal strategy at all.  Instead of relying on a “one size fits all” approach, we create customized withdrawal strategies for our clients that are designed to help reduce taxes and Medicare premiums and help them avoid getting caught in common tax traps (please click here is you would like to read more about 5 tax traps).

We address these tax issues through personalized tax planning. Our process creates thousands of different hypothetical scenarios allowing me to filter the results based upon those that are projected to generate the lowest taxes with the goal of maximizing the value of your portfolio.  This process creates a clear road map for actions we can take before retirement that may lower your tax burden once you retire. This road map shows us how much money to withdraw from each account in each year.  In many cases, the potential for tax savings is significant.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.