Year-End Tax Planning
This is the second of our Year-End Tips for Tax Planning series. Every few weeks until the end of the year, we'll give you ways to keep more of what you've earned. Use them as building blocks in your financial planning.
Over the course of a 40 year working career, earning just 1% to 2% more each year can make a huge difference in how much money you have at retirement age. Sometimes, depending on your tax bracket, you may actually make more by investing in tax-free bonds. The chart below can help you determine what this difference is for your tax bracket. The spreadsheet is interactive so you can insert your desired rate of return and we do the calculations for you.
I’ve used 3% as an example but you may enter any rate you choose.
We offer a word of caution on this: There’s more to good investing than just the after-tax yield. Check with us or your financial adviser before making a final decision.
- Estate Planning under the Biden Administration:
What's changing and how to react- April 7, 2021
- Thanksgiving Items - November 25, 2020
- Do you receive Social Security, Civil Service, or VA Benefits:
There's some good news and some bad news- November 23, 2020