As Karlan Tucker reviews tax strategies he keeps in mind that taxes are our greatest lifetime expense. This means we should do all we can every year to reduce what we owe Uncle Sam so we get to keep more of our hard earned money.
Here are ten strategies that will save you tens of thousands to millions in taxes over your life depending on your annual income.
- Fund Roth IRA’s – Tax free income
- Fund Life insurance then borrow the cash value tax-free. The death benefit will pay of the loan resulting in tax-free income.
- Fully vested Bonus Annuities will pay up to 50% of the taxes in your traditional IRA’s using the bonus the Insurance Company gave you in exchange for managing your money. This also stops up to 50% of your RMD’s at age 70.5 and beyond.
- Move to a state with no state income tax
- Invest in rental properties to take advantage of the tax deductions
- Purchase tax free municipal bonds
- Purchase a QLAC annuity – They don’t have RMD’s reducing your taxes
- Own life insurance – The death benefit is tax free – your heirs then can use it to pay the taxes in your tax infested IRA’s they just inherited.
- Keep all your tax deductible expense receipts then deduct them from your income. Every year people pay taxes on income they didn’t get to keep as a result of poor record keeping
- If you collect Social Security prior to your full retirement age, which for many is age 66, and continue to work, your wages will cause your Social Security income to get taxed. Be careful to coordinate when you take SS with when you actually quit working.
For the full details of every strategy above please call us to schedule a complimentary visit.
Tucker Financial Solutions 303-734-1234
Karlan Tucker has been helping his clients save taxes and be prepared for retirement for the past 35 years.