Sandra Block’s article on YourErie provides retirees with strategies to optimize their retirement savings and minimize tax liabilities through strategic account withdrawals and Roth conversions, emphasizing the importance of informed financial planning.
Strategic Retirement Planning – Maximizing Savings and Minimizing Taxes for Retirees
According to the article of Kiplinger, in a recent article from YourErie by Sandra Block, retirees are learning to maximizing savings and minimizing taxes their money wisely during retirement to save more and pay fewer taxes. Experts suggest starting with taxable accounts, then traditional IRAs, and leaving Roth accounts for last to benefit from tax-free withdrawals. However, newer advice from experts like Wade Pfau recommends a different approach: strategically moving money to Roth accounts early on to avoid high taxes later, especially when required minimum distributions (RMDs) kick in.
The article explains that retirees can make their money last longer by withdrawing from different types of accounts wisely. By spreading withdrawals across taxable and tax-deferred accounts while staying in lower tax brackets, retirees can reduce taxes now and in the future. This strategy also helps lower taxes on Social Security benefits. It suggests using charitable donations and Roth conversions to further improve tax efficiency and plan for leaving money to heirs under current tax laws.
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$1.2 Million in Retirement: Maximizing Savings and Minimizing Taxes with Strategic Financial Planning! (PHOTO: AARP)
Expert Advice for Retirees – Maximizing Savings and Minimizing Taxes in Retirement
Overall, Sandra Block’s article is a helpful guide to maximizing savings and minimizing taxes for retirees looking to manage their finances wisely during retirement. It advises retirees to stay informed and seek advice tailored to their situation to make the most of their retirement savings and minimize tax burdens.
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