Empowering You to Live Your Best Financial Life
Our expertise in financial, investment, and retirement planning will guide your path to financial fulfillment.
Maxing and Relaxing
So, you want to live comfortably in your future years and you’re not so sure it’s going to happen. What to do? The best step is to maximize your savings. If you’re not already putting the most you can into your retirement accounts, consider starting now.
How to Use Roth Accounts
I like to call Roth Accounts the “Never Taxed Again” account because you are taxed on the money you put in, but you are not taxed when you take it out nor are you taxed on the earnings.
Consider Making Roth Conversions Regularly
Last week we talked about the three types of accounts we can use for our Long-Term Portfolio and I said it’s important to have balances in all three types. The Already-Taxed or Roth account is the most difficult to contribute to so I want to talk this week about how we can get money into a Roth by making conversions.
Use All 3 Tax Structures for Your Long-Term Portfolio
We want to use all three of these when investing our Long-Term Portfolio and I’ll tell you why in a moment. But first, I want to talk through how each of them works.
Level Your Income to Minimize Your Taxes
Our tax structure is progressive which means the more you make then the more as a percentage that you will pay in tax. If we knew how much money we will make in our lives and we could control when we will make it, there seems to be an optimal strategy to pay minimal tax.
Pay Your Taxes and Be Happy
The goal with taxes is not to pay the least amount of tax – it’s to keep as much as you possibly can. There are lots of strategies out there designed to minimize taxes, and unfortunately, many of them also minimize what you take home.