Financial and Retirement Tax-Related Planning

In every financial decision you make, taxes* are or may become a critical factor. Because of the extreme size and complexity of the tax law, and the frequent changes in the tax law, you may need to devote some time to search through various reference sources to find answers to questions about various tax issues. Before undertaking hours of such research, contact and seek help from a professional who specializes in that segment of the tax law.

Taxes are a considerable factor when it comes to preparing your retirement plan. Taxes can impact investment portfolios negatively when proper investment management strategies aren't leveraged. You can potentially increase your potential after-tax returns through efficient planning. And, for retirees facing a lump sum investment when they officially retire, taxes can be crippling. There is good news! With proper planning, many taxes may be managed or reduced.

For example, you may be asked how you would like to receive your funds at retirement, in a lump sum or as an annuity stream. Both decisions have very different tax consequences. If you choose to receive your funds in the form of a lump sum, you may lose a portion of your portfolio to taxes immediately. And you will lose the benefit of tax deferral unless you reinvest the funds into a more tax favorable investment. Future earnings under tax deferral arrangements will be taxes as they are earned.

Fortunately, there are a number of tax-efficient strategies you can use to help minimize the tax bite or spread the liability over period of time which can reduce your tax rate and offer you tremendous financial savings.

This is where a good long-term financial planning comes into a whole picture of creating tax-efficient portfolios, comprehensive financial planning and proper structuring of multiple streams of income during retirement years.

In order to help create more efficient investments, the first step is always to evaluate current holdings in order to determine what if any restructuring is necessary.

Wherever you are right now on your journey of achieving your financial goals and creating a strong financial plan for you and your family or your business, please feel free to contact me with any questions.

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*It is not the intent of Dee Turkalj to provide tax advice. Gold Coast Securities, Inc, its affiliates and agents are not in the business of providing tax advice. Please contact your tax advisor with all questions regarding how anything discussed above may affect your tax situation.