How is it all going to work when it’s your time to retire?
Transitioning from a paycheck to living off accumulated investments and retirement plans can and frequently create anxiety. Additionally, most people entering retirement do not realize that different types of income will create different income tax outcomes.
Part of the problem stems from the fact that Congress has created different “classes” or types of income that are not treated equally at tax time. Therefore, even though you and your neighbor may have the same total amount of income in retirement, your taxes may be completely different because of the sources of that income.
For example, two individuals living next door to each other have $72,000 of income in retirement; one couple pays $4,546 in Federal and state taxes while the other only pays $35 in combined taxes. Who would expect that type of outcome? Our Wealth advisors will work with you to understand your unique tax situation and identify opportunities that may allow you to keep more of your money.