Tax-Efficient Strategies

Rising taxes may be a concern for anyone — especially for individuals approaching retirement. Having a solid strategy in place for how you will pay taxes on your retirement income can be an important component to living on a fixed income and avoiding surprises come tax time.

 

Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, without paying current income taxes, potentially allowing it to earn interest at a faster rate. Tax-deferred vehicles only allow you to defer paying income taxes until the money is withdrawn — presumably during retirement when you may be in a lower tax bracket. However, few financial vehicles avoid taxes altogether.

Because tax-deferred vehicles are generally designed to help individuals work toward specific long-term goals, there may be restrictions on when money can be withdrawn without penalty. Early withdrawals may be subject to charges and fees. Withdrawals prior to age 59 ½ may be subject to an additional 10 percent federal tax.

Our firm is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. You should consult a legal or tax professional on any such matters.

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New Day Financial & Insurance Services is a comprehensive professional services company providing a variety of financial solutions to individuals, business owners, and corporations.  

800-553-2140

Valencia Office

27240 Turnberry Lane, Ste. 200

Valencia, CA 91355

Lancaster Office 

44421 10th St. West, Ste. F

Lancaster, CA  93534

2020 © New Day Financial and Insurance Solutions  

Insurance products and services are offered and sold through individually licensed and appointed agents in all appropriate jurisdictions under New Day Financial & Insurance Solutions, Inc.  Investment advice offered through Financial Tax & Architects, Inc. (FTA). FTA is a registered investment adviser.  

 

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.