Limit Your Taxes

October 31, 2016

The tax system in America is extremely complex, and rewards certain demographics more than others. As financial advisors, we often see middle class citizens paying a higher percentage of taxes than billionaires because of these loopholes and benefits that are geared toward benefitting the very wealthy.

While we understand the patriotism of wanting to pay taxes, we also want to help our clients find ways they could be paying less taxes so they can save more for retirement. Because of the ways the tax brackets are broken up, your retirement income could bump you up from a 15% tax bracket to a 25% tax bracket. However, with a financial planner, you can adjust where your retirement income comes from so you can stay in that 15% tax bracket. Or, in certain circumstances, if you’re making over a certain amount per year in retirement, your Social Security dollars will be taxed.

And those are just the rates for today. With the election coming up, we will face some unknowns not only in the market, but in tax laws as well. If you’re not retiring for 20-30 years, you need to be asking yourself what the Estate Tax policies will look like at that time. For that reason, it’s important to have an estate attorney who can help you determine how to make the most of your savings and how to pass on the greatest amount of money to your heirs when you die.

Our tax code is a mess to figure out on your own if you don’t have an expert on your side—and the less you understand about the tax code, the more risk you face for paying more taxes than are legally required of you. Not to mention, the tax code changes so frequently that it’s nearly impossible to keep up with, especially if you aren’t a tax specialist. At Ashton Strobelt, we want to make sure our clients find the solutions that best fit their needs and goals. We will help you find ways to pay less taxes—legally, of course—and maximize your retirement income so you can enjoy a stress-free retirement.

Got questions? Email us at questions@retirementbrothers.com or call us to set up a free first consultation today.