Lightpath serves many different clients with a variety of financial planning needs. Like them, your needs are as individual as you are. As such, our team is proud to provide you with professional guidance and an array of financial planning and wealth management services that can be personalized to fit your situation.
Tax Minimization Strategies
If taxes rise in the future, will it cut into your retirement savings?
Rising taxes may be a concern for anyone — especially for individuals approaching retirement. Having a solid strategy in place for how you will pay taxes on your retirement income can be an important component to living on a fixed income and avoiding surprises come tax time.
Investing in or purchasing a tax-deferred vehicle means your money can compound interest for years, without paying current income taxes, potentially allowing it to earn interest at a faster rate. Tax-deferred vehicles only allow you to defer paying income taxes until the money is withdrawn — presumably during retirement when you may be in a lower tax bracket. However, few financial vehicles avoid taxes altogether.
Because tax-deferred vehicles are generally designed to help individuals work toward specific long-term goals, there may be restrictions on when money can be withdrawn without penalty. Early withdrawals may be subject to charges and fees. Withdrawals prior to age 59½ may be subject to a 10 percent additional federal tax.
Our firm is not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. You should consult a legal or tax professional on any such matters.
What is your time worth?
The first step in reaching your goals is meeting with someone who can help get you there. We invite you to enjoy a complimentary consultation with one of our financial planners. It’s an opportunity for you to ask questions, talk informally about your dreams, goals and financial needs. Take that first step and schedule an initial consultation.