Is Your Tax Planning Strategy Effective?

What is a major factor of a happy retirement? An effective tax planning strategy. Taxes are the single largest, and often most unexpected, expense in retirement. Having an effective tax planning strategy in retirement is crucial to minimize your tax liability and optimize retirement income.
Although April 18 is this year’s tax filing deadline, being proactive on a year-round basis is imperative. Strategically withdrawing funds from taxable accounts while allowing other funds to grow in tax-deferred accounts can help decrease your tax liability. Planning ahead and taking advantage of deductions, credits, exemptions, charitable contributions and medical expenses is another way to help maximize deductions to lower your taxes. 
Moreover, tax planning is important for estate planning purposes. Working with a financial advisor to structure accounts and assets in a tax-efficient manner will help your loved ones receive the max inheritance, without paying unnecessary funds to the government.
Many people lack thoughtful conversation to reduce the impact of taxes eroding their hard-earned savings. There have been significant changes in the tax code in recent years, particularly impacting retirees. With the recent passage of SECURE Act 2.0 and the new 2022 RMD rules, this is a complex and rapidly changing landscape that requires specialized expertise and ongoing commitment to navigate.
Concerned about taxes impacting your retirement? Working with an experienced financial professional can help you create a tax efficient strategy to maximize your retirement savings. For more information, contact us at (661) 297-7566 or visit www.PiersonWealthManagement.com. 

Securities and advisory services offered through Cetera Advisors LLC (doing insurance business in CA as CFGA Insurance Agency LLC CA Insurance Lic#0132305), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. Ivy Pierson CA Insurance Lic#0C92500. For a comprehensive review of your personal situation, consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice.