Financial Health Basics

Get Tax Smart, Make Your Money Work For You

Ty J. Young Wealth Management

September 9, 2021

Get Tax Smart, Make Your Money Work For You

Retiring right now can be complicated, and maybe harder than ever before. But you’ve saved steadily your whole career and have seen hard times come and go. Now you are ready to embark on making the most out of your life after work.

What makes a successful retirement? To us, it’s knowing exactly where you stand financially and making a plan for the future. The biggest key to successfully maintaining your quality of life is to introduce a thorough income management strategy. At Ty J. Young we specialize in investment strategies that are protected. That being said, we always recommend consulting your tax adviser on any changes to your income management strategy.

Our Financial Strategists can talk you through the finer points of why a balanced wealth management strategy is a great way to secure your financial freedom for the next ten, twenty, or thirty years. By taking the right sequence of withdrawals you can make sure you have the money you need when you need it. Getting your money in the right order will allow you to maximize your gains and ensure a successful retirement.

Planning for the Long Haul

Retirement is a long-term commitment. You want the money to last at least until the day you die. To get there, you need to set up a reliable and consistent income from your nest-egg to ensure you don’t run out of funds.

You know what you are working with and preferably have protection against losses. One of the protection strategies that financial advisers always speak of is “diversified portfolios,” and they are right to. To best manage your income, you can pull from different parts of your portfolio when you need to.

In our book, proper cash flow is a key to financial health and happiness.

What it Means to Have a Tax-Smart Income Strategy

When it comes to taxes, many people just do what is easiest. It seems like this is exactly what the IRS wants, but the simplest route is rarely the best way to access your money. From a tax standpoint, the path of least resistance can be expensive.

By sequencing your withdrawals across your portfolio, you can maximize your gains. Our Financial Strategists are experts at coaching you through the best way to withdraw the funds. Having a strategy from the start can set you up for personal success no matter what your tax bracket.

Are you ready?

We have a few simple questions you can use to judge your retirement readiness:

  1. Do you know where you stand financially, will you have enough money for retirement?
  2. Do you know what you need from a retirement income strategy?
  3. Can you “eat the eggs without eating the chicken”? In other words, can you use your interest or gains to pay your bills without dipping into your principal?

Even if you answered no to all of these questions, it’s not too late. By setting up the proper plan and investment strategy, you can set yourself up for a successful and relaxing retirement. If you are unsure of your current strategies our Financial Strategists are standing by to help you today. Schedule an appointment to get on track with your retirement goals.

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