There is a very common misunderstanding that after retirement, taxes automatically decrease. For many individuals and couples in the Seneca, SC, area, taxes may substantially deplete their retirement account if they are not structured to minimize tax liability.
As an expert and author on the subject, Matthew Dixon is able to assist people in Seneca, SC, to develop the best tax strategies to limit this issue during retirement. Matthew Dixon, a Registered Financial Consultant, will review your current portfolio and assist in making changes to limit your tax liability now as well as after you retire.
In many situations, a financial advisor may recommend balancing a portfolio or moving specific investments to more tax-efficient options. Doing this before retirement offers greater savings and the potential to avoid tax issues in the future. It also provides current tax savings that can be applied to retirement savings.
Current Considerations
One of the recommendations from Matthew Dixon is to maximize your tax deductions and credits when you are working. This includes contributing the maximum allowable to a traditional IRA or a Roth IRA. For those with a 401(k) with an employer matching option, maximizing contributions doubles your retirement savings on an annual basis.
Types of Investments
Through a thorough review of your current retirement plan, Matthew Dixon will identify three times of tax considerations. These include tax deferred, tax free, and tax managed sources of income. Ideally, having savings in all three categories allows for withdrawal strategies in retirement that limit your tax liability.
