Why does tax planning matter for your retirement plan? Brian talks through the difference it can make and why you should pay attention to it now as a part of your financial plan.
When it comes to taxes, should you use the same person that files taxes to do tax planning and retirement planning for you? A CPA is great at filing taxes and looking at what happened the past year, but don’t often do anything with tax planning. Saving money on taxes throughout retirement requires you to look forward, not backward. What things can you do now to plan ahead for taxes in retirement?
Looking forward with different tools available can make a huge impact on the money you keep. There are a ton of questions to go through to make the right decision. Many people wish after the fact that they did a Roth conversion. At some point, tax rates are bound to go up, meaning you will get less of that money in retirement when you have to pay the taxes on things like RMDs. Find out what the difference would be if you convert it now. It might not feel great initially, but it pays off hugely in the long-run.
What are you doing about tax planning?
0:12 – Should you use the same person for tax planning and retirement planning?
3:39 – Is it worthwhile to do a Roth conversion?
Saving money on taxes throughout retirement requires you to look forward, not backward.
-Brian Bowen
