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Planning for retirement is not like it used to be. Today, people live longer after they retire. As a result, saving for retirement is more critical than ever.

The benefit of this new reality is that there are more qualified experts to help you prepare for retirement. Some of these financial planners are well-versed at leveraging regulations and laws to create a retirement approach free of tax.

However, it’s not that simple. A tax-free approach requires several methods, particularly retirement asset management. 

Your retirement approach should include a diversified portfolio. This goes beyond a 401K, and is how retirement wealth advisors help.

Start a Roth IRA

Through a Roth IRA, you can contribute up to $5,500 per year and approximately $1,000 more if older than 50. You will pay taxes upfront. However, if looking for a retirement approach free of taxes, this is a safe investment. You will not have to pay taxes on it once you retire or while it grows. 

Retirement wealth advisors help you determine the best ways to maximize a Roth IRA.

You Pay Property Taxes—Why Not Benefit From Municipal Bonds?

Townships sell bond anticipation notes all the time to raise capital for big-ticket items. These bonds are not federally taxed and are generally safe. However, the payout is lower than taxable bonds. These are not a solid retirement approach free of tax, but it does help to diversify your assets.

Enroll in a Health Savings Account

You are probably familiar with this concept, depending on where you work, also called an HSA. The benefit for a retirement approach free of tax through an HSA is using it to reimburse yourself for medical expenses—if your insurance provider allows. 

Withdrawals from it are tax-free, but make sure to keep your receipts and talk to retirement wealth advisors to maximize this potential benefit.

There Are Other Roth Options for a Retirement Approach Free of Tax

If a Roth IRA is not right for you, consider a Roth 401(k) or 403(b). These options can help make your retirement approach free of tax possible. Your investments in these plans grow tax-free, and there is no tax on withdrawals. You can contribute up to $18,500 per year, and if older than 50 add an extra $6,000.

Use Life Insurance for Your Retirement Plan

Some life insurance plans may actually help with your retirement approach free of taxes. There are plans that allow you to take advantage of the cash benefits currently and are possibly free of tax once you retire.

What to ask Retirement Wealth Advisors?

Having someone to help achieve the goal of a retirement approach free of tax is necessary to find the legal avenues to take advantage of current regulations. Don’t shy away from asking advisors questions to determine the best fit. Consider asking the following questions:

  • How do wealth advisors make money?
  • Is your wealth advisor currently involved in any legal or regulatory matters?
  • Where are the investments held?
  • How does your wealth advisor manage a retirement portfolio?
  • Does your wealth advisor offer financial planning?
  • What are the risks of retirement?

Review Your Main Expenses for Retirement

Whether you are high net worth retirement planning, middle class, or a low-income earner, understanding your monthly expenses before you retire helps you manage your finances after the annual income is gone. Track where you are spending money to find ways to trim your costs and stretch that budget.

Retirement Asset Management

Knowing your monthly income and assets will not help your plan for a retirement approach free of tax, but it is a factor for preparing to live without an annual salary. This breakdown should be precise and include your monthly expenses. Your assets, such as investments, can provide a boost from time to time, but that can also decline.

Tax-Free Final Thoughts 

There is a lot to consider when planning to retire. Ideally, a retirement approach free of tax is the most desirable result, but this is not always possible. Manage your money, work with retirement or financial planning advisors, and diversify your cash holdings and investments. A retirement plan is not based on one revenue source.


Contact Green Ridge Wealth Planning today to plan your retirement approach free of tax.

Post Author: rjmascia

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