Is your Current Financial Plan Tax Strategic?

            The Motley Fool recently made a statement saying that you can’t avoid taxes on social security. If this seems to be a bit of a downer, it is! The good news is that it may not be entirely true. With the help of a qualified financial professional, like those at Raleigh Wealth Solutions, you might be able find specific strategies that will help you to lessen the financial blow of social security taxes. While there are certain income thresholds that trigger these taxes, the taxes are actually more affected by where money is coming from, rather than how much you have. For example, if income is coming out of a Roth IRA, this won’t affect your taxes, regardless of how much you are receiving. If you are using a LIRP (Life Insurance Retirement Plan), you will enjoy unique tax efficiencies when you strategically take money out of such a plan. It is all about asset location when it comes to minimizing your tax burden!

RMD taxes are similar to taxes on social security in that you may be able to minimize them with help from a qualified professional as well. For a lot of the select families at Raleigh Wealth Solutions, RMDs aren’t necessarily needed to provide income and are often simply re-invested. In this case, it is wasteful to pay taxes on the RMD itself and then AGAIN on the gains from the re-investment. Depending on your situation, RMDs could potentially be used in a strategic tax, and legacy play, to fund a maximum death benefit life insurance policy. While you can’t avoid the tax on the RMD, your beneficiaries won’t have to pay taxes on a death benefit. You would be saving money by not paying additional taxes, and as an added plus, the death benefit produced from the policy can be much larger than the earnings accumulated from re-investment. Therefore, you and the people you care about most end up better off! With that being said, each situation is unique and the above strategies aren’t meant to advise you how to manage your finances. A plan catered to your unique needs is needed to determine the best direction for your financial future. Call us today (919-852-1215) to take advantage of creative strategies that won’t allow your hard-earned money to be unjustly taken from you!

            If you would like to hear more about the strategies discussed in this post, listen to our special report on the radio at the following links:

Special Report Part 1

Special Report Part 2

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