We all know about how important it is to have a plan for taxes in retirement. So, we create Roth conversions strategies, but what if I told you there is simple tax savings strategy that is available to anyone.
It's called Asset Location.
This is when you align the tax type of your investments when the tax type of your accounts to minimize your annual tax burden.
For example, your IRA will always be taxed as normal income when you take money from it. Because of this, you would want to have investments that are taxed as normal income in this account type.
Asset location is a simple way to lower your tax bill annually, but many don't know about it or are overlooking this - even advisors...
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What is Retirement Answers?
Retirement Answers is a podcast built to help you succeed in retirement. The thought of retirement can be overwhelming and downright scary for many... but it doesn't have to be!
The goal of this podcast is to provide thoughtful insights and strategies to give you the confidence you need to retire successfully. At the end of the day, my ultimate goal for my clients and podcast listeners is to live a fulfilling retirement.
Follow along as I publish a new episode each week covering everything from retirement income planning, tax planning, Social Security, insurance planning, investing, and much more.
Here's to learning everything you need to know to live out your dream retirement!