These 3 Tax Strategies Could Help Your Retirement Strategy Wellington Wealth Strategies

Have you been considering the impact taxes will have on your retirement savings? Have you been strategic in managing the effect taxes may have on your financial future? If you answered no to either of these questions, you may want to take a look at the following tax planning ideas.

  1. Consider a Roth IRA

You make contributions to a Roth IRA with after-tax dollars. So, when you withdraw from a Roth IRA, you don’t have to pay taxes on those withdrawals. There are various rules about when you can withdraw from a Roth IRA, and there are some limitations to contributions, but a Roth IRA might be a good option if you expect that you are currently in a lower tax bracket than you will be when you retire.[1]

  1. Tax-Advantaged Investments

Certain investment products can have tax benefits depending on how you use them. Some types of real estate may be tax-advantaged. Annuities can come with tax advantages. In addition, municipal bonds may also come with tax advantages. So, make sure you ask your advisor about some tax-efficient strategies before finalizing your investments.[1][2][3]

  1. Charitable Giving

Did you know that giving money to charity can help you to reduce your tax burden? You will have to itemize your income tax, but if you do, it’s possible to reduce your tax burden if you strategize your charitable gifts with your taxes.[3]

Conclusion: If you’ve ever wondered what you can do to reduce your tax burden, we’re just scratching the surface. There may be ways that insurance can provide you with tax-efficient funds to help cover your costs and reduce your taxable income. However, it takes a well-planned process and a comprehensive understanding of your financial options to make sure you make the most of the tools available to you.

If you think you’ve been paying too much in taxes or are worried you might in the future, now is a great time to reach out to a financial professional. They can help you uncover a complete picture of your financial situation, illuminate key strategies that may work best for you, and offer their vigilance and guidance throughout your financial journey. So, Click HERE to reach out to us today at Wellington Wealth Strategies for a complimentary review of your finances to get started.

 

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Advisory services are offered through Wellington Wealth Strategies, an independent investment advisory firm. Securities offered through Purshe Kaplan Sterling Investments, Member FINRA/SIPC. Purshe Kaplan Sterling Investments and Wellington Wealth Strategies, LLC are not affiliated companies. Wellington Wealth does not offer tax or legal advice. This blog is intended for informational purposes only and shall not be construed as individual investment advice. The information herein was obtained from various sources. The information in this report is given as of the date indicated and is believed to be reliable. Wellington Wealth Strategies assumes no obligation to update this information, or to advise on further developments relating to it. Past performance is not indicative of future results. Investing in the market involves risk, including the potential loss of principal.