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Retirement Planning

Income Tax Reduction

For our clients, we break our down income tax reduction tactics into three categories:

  1. Reducing taxes annually
  2. Reducing taxes over the course of an entire retirement
  3. Reducing taxes that beneficiaries will pay

Through various income planning and tax planning strategies, we aim to utilize the Core4 framework in a way that reduces the amount of taxes our clients pay. While you should always consult your CPA for tax advice specific to your situation, as we build your investment and income plan, Oak Harvest will also focus on utilizing our knowledge of the tax code to your advantage.

Many aspects of retirement are based on your adjusted gross income or modified adjusted gross income numbers. These are figures that are calculated by the income your receive each year and are reported on your tax return. The specific items that are reported each year depend on how much income you’ve taken and from which accounts each year. They are also impacted by the total short- and long-term capital gains you’ve had in your non-IRA investment accounts.

IRA distributions, Non-IRA distributions, Dividends, Bond interest, annuity income, Social Security, Short-term gains, Long-term gains, Real Estate, Limited Partnerships and more all have unique tax characteristics. Factors such as where these investments are placed in your investment plan, from which ones you take income, and when you receive that income can all make a big difference in your tax liability.

To a large extent, many people have control over what goes on their tax return. We believe that building a retirement income plan that takes the limits of the tax code in mind can lead to a reduction in the amount of taxes you pay.

In an age where more and more people are wondering if they are going to have enough money to pay for increasing medical expenses, long term care expenses, and possibly taking of mom and dad, saving money on taxes can be an important action to take. The key is saving money each year. The interest earned and compounded over time on these ‘saved dollars’ has the potential to make a difference in your situation later in life.

As part of your Customized Retirement Plan, our Dream Team and your investment adviser will review available options with you, work with your tax advisor, and focus on helping you achieve a better retirement outcome.

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