Death and Taxes
As Brad Pitt famously delivered the line in the 1998 movie “Meet Joe Black”.
Taxes are inevitable…and many forget that all of their 401(k) and other qualified retirement assets will be taxed on the way out during retirement. So that big chunk of money that you have sitting in your 401(k) account, may not be as big as you think. Depending on your situation, it may make sense to utilize a Roth Conversion strategy along the way to lower your tax burden in retirement.
As shown in the example below, efficient tax and distribution strategies can be just as important as the the actual investments held in your portfolio. This needs to be evaluated over the course of your career as multiple factors influence the implementation (tax rates, income, etc.)
Are you maximizing your tax distribution strategy? If your answer is I don’t know - reach out.