As I work with clients here in Temecula and Murrieta it still surprises me how many financial advisors gave these people financial advice that directs them to set up financial vehicles to fund their retirement plan with dollars that are going to have a tax bill due when it is time to retire.

When I speak to the same clients I ask them, “Do you think taxes will be higher in the future when you are ready to retire and start taking your retirement income, the same, or lower?”

I have only had one person say they think they will be lower; all the others say they think taxes will be higher. Am I the only retirement planner who is actually asking that question or are they just not listening to the answers?

The clients I meet with to help develop a financial plan for the future also say they expect to have their children grown, through school, and out of the house by then and some of them hope to have their homes paid off by the time they retire.

That would mean they expect taxes will go up and their deductions will go down. Hmmm.

Does it make sense to defer a tax calculation and tax payment if you think taxes will be higher than today when the bill comes due?

Don’t let this happen to you!

If you would like to look at options to build a tax free retirement, give me a call to schedule a conversation.