Tax-Saving Strategies to Benefit Your Future
Pay Later or Pay Now The Sixty-Four-Million-Dollar Question? Learn tax-saving strategies to benefit your future.
Tax-saving strategies can be an essential part of planning for your financial future. Deferring taxes through employer-sponsored plans and Individual Retirement Accounts (IRAs) is a common and effective way to reduce your current tax liability and provide for your future. However, while that might seem advantageous on a current basis the potential to receive it back in retirement in a higher tax bracket makes tax-deferred retirement plans less appealing to some.
This is the reasoning behind the invention of the ROTH which allows employer-sponsored plans and individual retirement accounts alike to leverage tax deferral without a current tax deduction making them non-taxable in whatever tax bracket achieved while in retirement.
The shortfall for many, notably higher wage earners, is they can’t save enough due to the annual plan contribution limits set forth by the IRS. Moreover, lower-income earners needing to access their savings may suffer market losses and penalties depending on the type of qualified plan they participate in.
There are a multitude of combinatory strategies that can be tailored to your specific situation.
Tax-saving strategies may include a form of life insurance such as:
- Indexed universal life
- Variable life
- Whole life
- Permanent life
- Universal life
Our team can assist you in identifying the best tax-saving strategies for your specific financial situation and goals. Tax laws and regulations can change over time, so staying informed and making adjustments as needed is crucial for effective tax planning. Contact us for a complimentary consultation.