Lessen the tax bite for a fuller retirement

Taxes are by far the largest cost that most households face. Over time, that cost can be a drag on income and assets available when retirement rolls around. Being tax efficient as you squirrel away funds now and throughout retirement can lessen the tax bite.

Tax efficiency is important to affluent Americans but not all are busy battening down the tax hatches. The American Institute of CPAs (AICPA) surveyed affluent Americans with $250,000 in investable assets or more than $200,000 in annual household income prior to the passage of the Tax Cuts and Jobs Act of 2017. According to the 507 respondents:

  • Three in five (63%) said they’re very or somewhat likely to change their personal financial plans based on the new federal tax law.
  • More than half of the respondents believed working with a tax professional would increase their ability to meet their personal financial goals.
  • Although 90% of survey respondents said tax planning would be somewhat or very important to their financial well-being in retirement, only 43% said evaluating the tax efficiency of their savings and investments was the most important aspect of their financial plans.

What does all this mean? While folks recognize tax planning impacts retirement savings, less than half are doing, or plan to do, anything now to reduce the tax bite. The recent enactment of the Tax Cuts and Jobs Act presents opportunities to improve your tax position in 2018, including tax planning around charitable contributions, debt repayment (related to home mortgage and equity lines of credit), and qualified business income deductions.

Fill the tax planning gap now and secure a better retirement by reaching out to your Wambolt advisor and the larger Wambolt team of specialists.



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