You’ve worked hard all your life and you’ve been smart with your money. Now you’re ready to finally call it quits and enjoy the so-called “golden years.” Many people look forward to retirement all their lives. Day after day, week after week you clock in and clock out all with your eye on that glorious final last day. Whether you want to travel, spoil your grand-kids, give your time to charitable causes or just hang out in sunny Florida by the pool all day, you’ve earned the right to enjoy life after your career. However, retirement isn’t all roses and ice cream, especially when it comes to taxes. Even after you are no longer collecting a weekly or monthly paycheck you still have to answer to the taxman every year. So what do you need to know in order to truly be prepared for taxes in retirement?
Even though your income situation has changed, you really need to treat retirement like another chapter in your overall tax life. That means it takes careful planning and strategizing in order to be sure you have enough to take care of yourself and to enjoy the experiences you want to have when you’re done working. Here are some key strategies that can help you keep your tax burdens in check and prevent any nasty tax surprises.
You don’t want to spend too much time thinking about taxes in retirement. The key is to know what to expect. By planning for the future and preparing now for your taxes in retirement you should not be left with any unexpected tax bills that you can’t afford to pay. Likewise, you should have enough left over to still enjoy doing all those things you plan on doing when you hang up the work shoes for the last time, even if those plans mainly consist of you laying in the sun by the pool.
This post was published on June 27, 2016