Tax-Free Retirement

There are many methods available to right-size a bloated 401k or IRA account and beef up your Post-Tax asset. Tax buckets may be categorized as Taxable, Tax-Deferred, Pre-Tax, or Post-Tax accounts. Account examples and tax treatments are summarized in the table below. Detailed account characteristics are captured in “Tax Treatment of Investment and Retirement Accounts.” […]

Using an advanced Tax-Free Retirement Calculator, we show how to implement a tax-optimized savings plan that will achieve ≈0% tax at retirement. First, let us look at the Tax-Free Retirement Calculator from FinCrafters App. It is a more advanced version of the Retirement Planning Calculator discussed in “Retirement Scenarios.” It enables you to figure out

Achieve a near ≈0% income tax during retirement by optimally allocating your savings between various tax buckets. A result of this tax allocation strategy is also the generation of market risk-free income streams to meet basic living expenses during retirement. We discussed the income and expense profile of a high earner in “Life of an

Tax rates are at their lowest levels in 80 years! Amongst the tools available to balancing the Federal budget, it is the easiest factor to control and has the biggest economic impact. The top income tax rate is now at a historically low level. The TCJA law further reduced the tax rates for all income