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Breaking the nest egg: 7 tax-wise strategies for tapping your portfolio in retirement

by on
in Small Business Tax,Small Business Tax Deduction Strategies

After you retire and the paychecks stop, you'll probably need to depend on your investments for cash flow. If you have a mix of investments, inside and outside a tax-deferred retirement plan, know which to tap into first.

Advice: When you start breaking into that nest egg, use the following tactics to ease the tax bite:

1. Avoid selling stock if you take early Social Security benefits. If you choose to receive Social Security benefits at the
earliest possible time (age 62), avoid selling appreciated securities in taxable accounts. By not taking those gains, you'll keep your adjusted gross income (AGI) lower, which may reduce the tax you'll owe on Social Security benefits.

Also, if you don't sell appreciated securities, you may die still owning them. As a result, your heirs may earn a basis step-up, depending on tax law. If that occurs, no income tax will be due on the investment appreciation during your lifetime. ...(register to read more)

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