As financial advisors, we understand the importance of minimizing lifetime tax bills and maximizing tax-free and tax-advantaged income during retirement. That’s why we offer a range of tax optimization strategies to clients, including:
- Strategic withdrawals from different accounts: Careful planning can help to minimize taxes paid in retirement.
- Taxed managed investments: This strategy for non-retirement accounts reduces your long- and short-term capital gains exposure while performing similarly to its benchmark.
- Tax-loss harvesting: This involves selling investments at a loss to offset capital gains and reduce the overall tax burden.
- Conversion of a traditional IRA to a Roth IRA: This can be a good strategy for those who expect to be in a higher tax bracket during retirement.
- Charitable donations: Donating to charitable organizations can help to reduce taxes and provide other benefits.
- Maximization of tax credits and deductions: There are many credits and deductions available to those in retirement, and maximizing these can help to reduce the overall tax burden.