Tax Planning Archives

8 11, 2021

What is a Roth Conversion and Should You Do It?
What is a Roth Conversion and Should You Do It?

What is a Roth Conversion and Should You Do It?

BML Wealth Marketing2025-02-05T21:48:33-08:00November 8, 2021|Income Planning, Retirement Income, Tax Planning|

When you think of your major expenses, you might think of housing, healthcare, travel, or something else. But have you considered that taxes could be your biggest expense, even in retirement? There could be ways to reduce your tax burden today and tomorrow, including a Roth IRA conversion. What is Roth IRA vs. a Traditional IRA? Workers can contribute pre-tax dollars to a traditional IRA. When money is distributed, it’s taxed at ordinary income rates. In contrast, a Roth IRA is funded with after-tax dollars. A Roth IRA can be a valuable asset in retirement [...]

4 10, 2021

Major Changes That Could Happen During Your Retirement
Major Changes That Could Happen During Your Retirement

Major Changes That Could Happen During Your Retirement

BML Wealth Marketing2021-10-05T08:23:47-07:00October 4, 2021|Economy, Retirement Planning, Tax Planning|

Do you ever feel like you live in a completely different world than you did 20 years ago? It’s worth thinking about how different it will be in another 20 years. Beyond cultural and personal changes, we could see major economic changes that could affect us in retirement. It’s always worth knowing what’s going on so you can have a plan to prepare. Could You See Higher Taxes in the Near Future? We’ve seen increased government spending due to COVID and plans to spend trillions more. We could pay for it in taxes down the [...]

30 08, 2021

Plan for the Tax Rates of the Future
Plan for the Tax Rates of the Future

Plan for the Tax Rates of the Future

BML Wealth Marketing2021-10-04T11:42:20-07:00August 30, 2021|Tax Planning, Taxes|

Retirees may no longer receive taxable income from an employer, but they will likely receive income from other sources which can be taxed. And while we know what the tax rates are now, we don’t know what they’ll be in 10 or 20 years – or even one year from now. This is why it's important to plan for the tax rates of the future when it comes to taxes. Now vs. Tomorrow Right now, many people are enjoying relatively low tax rates: In 1944, the highest income tax rate was 94%, and in 1978 [...]

9 08, 2021

How a Financial Advisor Can Help You Pursue Tax-Smart Strategies
How a Financial Advisor Can Help You Pursue Tax-Smart Strategies

How a Financial Advisor Can Help You Pursue Tax-Smart Strategies

BML Wealth Marketing2021-10-05T08:30:01-07:00August 9, 2021|Tax Planning, Taxes|

They say there’s no such thing as a free lunch, but what about a tax-deductible lunch? While many of your income sources can be taxed, there are strategies to help minimize your overall tax burden before and in retirement. An advantage of going to one professional for all of your financial planning needs is that everything from investment strategies to estate planning works together in one overall plan. Here’s how a financial advisor can help you pursue tax-smart strategies. Manage Investments with a Tax-Smart Strategy Every part of a financial plan is connected, including an [...]

28 06, 2021

Where Could Interest and Tax Rates Be Headed?
Where Could Interest and Tax Rates Be Headed?

Where Could Interest and Tax Rates Be Headed?

BML Wealth Marketing2021-06-28T06:42:45-07:00June 28, 2021|Estate Planning, Federal Reserve, Tax Planning, Taxes|

Are you aware of the latest news that could affect your money? We recently heard from Federal Reserve Chairman Powell regarding interest rates, plus the Biden administration released a “Green Book” outlining some potential tax-increasing measures. There are several big changes proposed, and if they come to fruition, you may need to review your tax minimization strategy. The Latest from the Federal Reserve Powell indicated the possibility of interest rate increases in 2023. The Fed’s projections point to two rate hikes in 2023, but Powell says that’s far from certain. He pointed out that we’re [...]

2 05, 2021

Prepare for Taxes On Your Retirement Accounts
Prepare for Taxes On Your Retirement Accounts

Prepare for Taxes On Your Retirement Accounts

BML Wealth Marketing2021-05-02T22:23:23-07:00May 2, 2021|Retirement Income, Tax Planning, Taxes|

The Biden administration has already spent $1.9 trillion on COVID relief and has plans to spend trillions more on infrastructure projects, Medicaid expansion, education, and climate investments. In order to fund these projects, the administration has proposed several tax-increasing measures on corporations and individuals. You may think you won’t have to worry as much about your tax burden in retirement, but you could be wrong. You may need to prepare for taxes on your retirement accounts. How Are Distributions Taxed? Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and Thrift Savings plans [...]

5 04, 2021

4 Types of Retirement Income and How They’re Taxed
4 Types of Retirement Income and How They’re Taxed

4 Types of Retirement Income and How They’re Taxed

BML Wealth Marketing2021-04-05T08:18:55-07:00April 5, 2021|Income Planning, Retirement Income, Tax Planning|

Taxes don’t stop when you stop receiving a paycheck. If you have multiple sources of income in retirement, your tax burden could be substantial. By understanding how different types of income are taxed, you can develop income planning strategies that work to lower your taxes throughout retirement. Start with these 4 types of retirement income and how they’re taxed. Investments held for over a year are taxed at preferential rates. Investments that are held for one year or less are considered short-term capital gains. Short-term gains are taxed at ordinary income rates. However, investments that [...]

21 03, 2021

5 Things to Know About COVID and Your Taxes
5 Things to Know About COVID and Your Taxes

5 Things to Know About COVID and Your Taxes

BML Wealth Marketing2025-02-05T21:56:53-08:00March 21, 2021|Tax Planning, Taxes|

We’ve entered a full year of living with the pandemic, and there have been several events during the year that could affect you this tax season. In April 2020, the CARES Act (Coronavirus aid, Relief, and Economic Security Aid) provided relief to individual Americans and businesses and temporarily altered some parts of the tax code. While this was almost a year ago, the implications for you may extend to this year’s tax season. Here are 5 things to know about COVID and your taxes. Stimulus Checks If you received a stimulus payment in 2020, you [...]

1 03, 2021

3 Reasons Your Tax Burden Could Actually Increase In Retirement
3 Reasons Your Tax Burden Could Actually Increase In Retirement

3 Reasons Your Tax Burden Could Actually Increase In Retirement

BML Wealth Marketing2021-03-01T08:13:25-08:00March 1, 2021|Tax Planning, Taxes|

Will your tax burden dramatically decrease in retirement once you stop receiving a paycheck? Maybe not – maybe it will increase. Between retirement account distributions, Social Security benefits, and investments, you may have reasons to review your tax strategy in retirement. We may be experiencing relatively low taxes right now, but the recent change in leadership in Washington and a growing national debt could change that. Let’s look at 3 reasons why your tax burden could actually increase in retirement. Required Minimum Distributions Distributions from traditional retirement accounts such as IRAs, 401(k)s, 403(b), 457, and [...]

21 02, 2021

3 Ways Your Advisor Can Help You This Tax Season
3 Ways Your Advisor Can Help You This Tax Season

3 Ways Your Advisor Can Help You This Tax Season

BML Wealth Marketing2021-02-21T20:16:52-08:00February 21, 2021|Financial Planning, Tax Planning, Taxes|

As we enter this tax season, you may realize that your situation has changed. Maybe you were affected by the CARES Act, COVID, or went through a life change such as retirement, or became empty nesters. All of these things can affect how you file our taxes and now is the time to consider them. It’s also a good time to review your overall finances and make sure you’re sticking to your plan – or resolve to update the plan with the help of a financial advisor. There are many ways your advisor can help [...]