The Top 4 Ways to Position Yourself For a Tax-free Retirement

(don’t forget to checkout this Instagram post too)

Everyone’s goal in retirement should be first, to guarantee you never outlive your money.

But the second goal, should be to retire tax-free (or as close to tax-free as possible).

Here are the top 5 ways to do that:

✅ Slow the growth of your TAXABLE accounts

You can do this by shifting contributions to Roth 401k’s & Roth IRA’s OR through what’s called a penalty-free 72t early distribution strategy, which I talked about in other posts & videos.

✅ Make sure you have a Roth IRA established for at least 5 years prior to retirement 🫢

This will allow you to reposition money from taxable environments into accounts that you can collect tax-free from in retirement.

✅ Once you’re maxing out a Roth IRA annually, start making contributions to a life insurance contract

This MUST be a very specific type of policy that includes a provision for a net 0% loan in retirement… I did a video on this too.

This will not only be utilized to help fund your tax-free retirement but it can also serve a wonderful hedge against a costly long-term care event.

✅ Delay Social Security until AT LEAST your full retirement age (FRA), but ideally, until age 70

This can allow you to spend down your taxable retirement assets maximizing the capacity of your standard deduction, while simultaneously increasing your Social Security benefit by up to 76%.

BONUS TIP 😎

✅ Make sure you KEEP at least $350k in a TAXABLE account when you start taking social security (wait, what⁉️)

This might seem counterintuitive, but having about $350k in a taxable account is the ideal balance that allows you to take money out of a taxable account completely tax-free AND allows you to collect your social security tax-free (this all has to do with maximizing your standard deduction in retirement) ‼️

This might seem complicated, but it’s not terrible hard to execute.

Let’s chat 💬😎