Many people entering their final working years find themselves with more cash flow. The question then becomes: Where should those extra dollars go to try and strengthen your retirement future?

In this episode Michael CFP®, EA, CSS™ walks through a case study of a couple in their early 60s who are trying to make the most of their final working years. The discussion explores how different account types, tax brackets, and retirement contribution strategies could impact both current taxes and future retirement income.

Topics include:

💭 Why the years just before retirement can be a tax planning sweet spot

💭 Should extra savings go into a brokerage account, Roth IRA, or pre-tax retirement account?

💭 How the age 59½ age can change savings decisions

💭 Why taxable interest and dividends may create hidden tax drag

💭 The difference between marginal and effective tax rates

💭 How pre-tax 401(k) contributions could potentially lower your tax bill

💭 When it may make sense to target specific tax brackets

💭 A strategy for combining pre-tax and Roth contributions

💭 How capital gains tax rates can change based on taxable income

💭 Common mistakes pre-retirees make with excess cash flow

If you're within a few years of retirement and wondering how to try and make your savings work more harder for you, this episode provides several planning ideas to consider with your financial and tax professionals!

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Chapters:

00:13 Where to Put Dollars In Final 3-5 Working Career

02:30 $140k Income Example

03:31 Different Taxes On Type of Investments

04:34 Marginal and Effective Tax Rates

05:35 Impact of $15k Tax Deduction?

08:02 Wait, Spend Down My Savings Before Retirement?

08:47 Tax Ideas for Retirement Savings

10:59 Combine Roth & Pre-Tax Savings?

13:35 This Even Matter and Help?

14:17 Final Ideas & Considerations

#RetirementPlanning #TaxPlanning #401k #RothIRA #RetirementIncome #FinancialPlanning #PreRetirement #RetirementTaxes #PersonalFinance #cfp

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.