No matter how far away retirement is you can start planning for it now and even make moves to lower your taxes, since taxes will still need to be paid during your retirement. You can open an IRA or a roth account to lower your taxes during your retirement. It is also a good idea to pay off your mortgage before you retire, and opening an investment account may also be a good idea for you to plan for your retirement.
Key Takeaways:
- You will be taxed in retirement, it’s likely that a chunk of your social security will taxed.
- The less you need to withdrawal from your retirement is the less taxes that you will have to pay.
- It’s also a good idea to pay of your mortgage and open and investment fund.
“Whether your retirement is decades away or just around the corner — or you’re already living the dream — there are a few simple things you can do now to lower your taxes.”
Read more: https://www.nerdwallet.com/blog/taxes/trim-taxes-in-retirement/
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