Retiring today means more than watching an account balance grow. Rising health?care costs, creeping inflation, and ever?changing tax rules can quietly erode decades of hard work. The good news? Pairing smart wealth management with proactive tax planning keeps more of your money working for you–so your retirement feels secure, flexible, and fun.
The Retirement Risk Few People Discuss: Taxes
Market swings grab headlines, yet unnecessary taxes can cost retirees just as much. Capital?gains surprises, required minimum distributions, and Social Security taxation all eat into income. A plan that looks only at investments but ignores taxes is like a boat with a slow leak–you may stay afloat, but you’ll never sail as far.
Why Wealth Management Alone Isn’t Enough
A well?diversified portfolio is vital, but timing withdrawals, shifting assets between taxable and tax?advantaged accounts, and coordinating with legacy goals demand a broader view. That synthesis happens when tax planning and portfolio management sit at the same table.
Three Tax?Smart Moves to Try Before You Retire
- Strategic Roth conversions
Converting portions of a traditional IRA in low?income years can shrink future required minimum distributions and lower lifetime taxes. - Asset?location tactics
Holding high?growth stocks in Roth accounts (tax?free growth) while placing bonds in traditional IRAs (ordinary?income shelter) can boost after?tax returns. - Harvesting gains–and losses–on purpose
Realizing capital gains in zero? or 15?percent brackets, or banking losses to offset future gains, helps manage both cash flow and tax brackets.
Bringing It All Together
If you’re five to ten years from leaving the nine?to?five, now is the time to blend investment management with forward?looking tax strategy. Working with a fiduciary financial advisor in Scottsdale, AZ who centers your values, goals, and risk tolerance can turn a loose collection of accounts into a unified plan.
Look for a team that:
- Offers comprehensive tax and wealth planning designed specifically for your retirement timeline
- Specializes in helping clients nearing retirement protect what they’ve built
- Keeps the process simple and human, so you feel in control–not confused
