Retirement Income: It’s not what you have. It’s what you keep.

When you create a retirement plan you’re building a dream. You want to live in comfort and stability throughout your golden years.

Ensuring a pleasant, financially secure retirement depends on one simple factor—spendable income.

Spendable is the keyword here. It’s not just about the amount of money you have in the bank to support yourself. It’s about having the income to pay for your basic daily needs while also being able to choose how you want to live throughout your retirement.

Do you want to travel when you’re retired?

Do you want to have a socially active lifestyle?

Do you want to spoil the grandkids, every once in a while?

These retirement pleasures come with costs, which is why you need to plan for these expenditures by incorporating them into your retirement income strategy. So, how do you maximize your retirement income?

On the most basic level, there are two simple ways:

  1. You can increase your retirement income by trying to increase your growth rates or returns on your investments and savings. Unfortunately, this strategy incurs higher risks and often takes more time, making the strategy slightly less efficient.
  2. OR

  3. You can utilize strategies for reducing your tax burden, subsequently increasing your after-tax income. This tactic is a little more complex. However, an experienced financial advisor can show you processes and ensure that it’s done legally. And reducing the tax burden on your retirement savings proves to be the most effective means of increasing your spendable income in retirement.

Consider this Case Study:

Ellen is a retired CRNA with a total annual gross income of $80,000, which she generates through savings and Social Security. Ellen pays 25% income tax on her income, and that means she’s really taking home $60,000 per year. This income meets her essential expenses but doesn’t leave much wiggle room to visit her grandkids who live at a distance from her. Ellen thinks that if she can increase the growth on her savings, she’d be able to generate the extra income needed to pay for those life pleasures she wants.

However, when Ellen speaks to her CRNA financial advisor, she realizes that if she reduces her tax burden from 25% to 20% then she can gain an additional $4000 in spendable income. It’s a simple, lower-risk plan that gives her more than enough to visit the grandkids… and spoil them with a few gifts too!

Remember, when it comes to retirement, it’s not just about generating savings. It’s about protecting the savings you have.

And that takes SMART tax planning.

Find out how you can grow and protect your retirement savings, all at the same time.

Book a consultation.

Start planning the retirement of your dreams.

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