“Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right, for nobody owes any public duty to pay more than the law demands.”
– Judge Learned Hand (1872-1961)’’
The solutions we build for clients are not about avoiding taxes, but making sound decisions as to when and how taxes should be paid. Many believe taxes will go up at some point in the next 20 years. Whether you agree or not, it is difficult to find anyone who believes taxes will move downward. We are currently in one of the lowest tax periods of the last 100 years, so we encourage our clients to take advantage of the current tax rates, rather than leave their future to chance... The traditional way of retirement planning has placed a great deal of emphasis on tax deferral, but if taxes do increase, that could require one to work much longer than they desire or place them in jeopardy of running out of money. Often times, we encounter people that are in a tax bracket similar to their working years. This has an impact on their Social Security Income, causing 50 or 85% of their Social Security Income to be taxed as well, which pushes them into a bracket, additionally impacting how long their funds will last. In addition, many of the tax breaks they counted on during their working years are now gone, so they have fewer deductions than before.
What if you could be in the lowest tax bracket possible…or even better – a NO TAX bracket? Remember; it is not about avoiding taxes, but determining the most effective time to pay them and to provide the most impact to your liquid assets. By making sound decisions ahead of time and properly managing your income sources, the money spent paying taxes during retirement stay in your pocket; increasing your income OR putting them to work in your portfolio, allowing your funds to last longer.
Call today for a no cost consultation to see what your future could look like.