Tip 2 – Retirement Planning: Did you know the income you use in retirement has BIG tax implications?
You have been saving money your entire life to get to this point….
you have Pensions, IRAs, Annuities, and 401k’s – Think you’re all set?
You’re not!
The IRS is going to be taking some of your hard earned cash!
Why would they do that? Well, when you start taking your retirement assets as income, the IRS collects tax on your income.
Taxes, along with hundreds of other variables could affect your cash flow. Here are just a few examples:
- Tax-ability of the income source
- Withdrawal rate and tax consideration
- Asset allocation conversion of each pool of dollars or inflation
- Rate of return on your investments versus percentage of assets withdrawn each year
- Characteristics & features of your Retirement Investment Models (Pensions, IRAs, Annuities, and 401k’s)
All of these examples will have a direct impact on how long your assets will last in retirement. It’s important to review this with your Tax Planner.
Knowing the rules of retirement planning are extremely important, as well as managing all of these variables listed above. Miscalculations can cause costly trouble later in retirement when your ability to correct them are limited.
Feeling wobbly about this yet? That is because retirement planning is like sitting on a 3 legged stool.
Everyone has the same goal in retirement planning: Not to outlive their assets.
If you have any questions, comments or concerns about Retirement Plans, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.
- Mark
