Following are some important components our team focuses on to help people achieve retirement in the most tax-efficient manner possible.
No surprises here. Tax and retirement planning go hand and hand. You cannot do one without the other. Every dollar saved in tax is a dollar that goes right into your own pocket. Being aware of what type of income can cause your social security to be taxed or increase the amount of premiums you pay for medicare is one part of the planning process that should not be over-looked.
Take Control of Your Income
Distributions from your employer sponsored plan will be fully taxable. This reportable income affects the taxation of social security and even worse, will be subject to required minimum distributions (RMD). Take control of your income by understanding benefits of a Roth IRA. Our tax planning professionals will create a tax model that dictates the amount of your traditional IRA that can be slowly converted into a Roth, as well as how much tax will be owed during the conversion. We take a very precise approach when converting to Roth to ensure an excessive amount of tax is not due. You can learn more here.
A well designed estate plan will allow your assets to be distributed according to your wishes without going through the cost and hassle of probate court. However, there are other components to an estate plan that can be of equal importance. For example, durable powers of attorney (POA), both medical and financial, on each spouse are necessary in the event that one of the spouses become incapacitated. With a POA established, the other spouse will be able to act on their behalf.
Tactical Asset Management
Gone are the days of the “buy and hold” investment strategies used in the past. Modern investing today uses the service of a professional money management firm who possesses discretionary control of your assets. This allows the money manager to actively trade in the account,but this must be done in a fiduciary capacity. This means the money manager is legally obligated to operate in your best interests. With tactical money management, you will know there is a live person managing your assets. You can learn more here.
Develop a Retirement Income Plan
We want you to retire on your terms. To achieve this goal, Montini & Farrah Tax Advisory Group will create a long term, sustainable income plan. The income plan will show you where all your retirement income will come from and that it’s being managed in the most tax efficient manner possible. Most clients we meet with initially simply do not know how to retire. When they see the plan in front of them, it becomes much more clear that retirement can be achieved when they are ready. Click here to learn more.
Please call our office at (480) 428-8005 to help us achieve your retirement goals.
Written by Marc Montini, a series 65 licensed fiduciary and Investment Advisor Representative.