Many Americans save money in a traditional IRA. If you’re one of them, you have a tax bill coming. Why? Because part of your traditional IRA dollars aresimply a loan from Uncle Sam.While you may not have thought about it, many advisorshave. Many advisorsare paid a percentage to manage that IRA money.Would they rather have a percentage of your money, or a percentage of your money and a percentage of Uncle Sam’s money? Now you understand why some advisors never mention paying taxes on your IRA untilthe government makes you at age 70 ½.
At Golden Reserve, our advisory fee is flat. It’s not based on the size of your IRA. Put another way, we don’t charge a percentage on your loan from Uncle Sam. This philosophy creates one of our first courses of action with new clients. We develop an IRA tax withdrawal plan. Having an IRA tax withdrawal plan allows you to efficiently detax your IRA and pay the taxes on your terms. Almost all retirees have a lower effective tax rate upon retirement. They simply aren’t earning as much money.Lower earnings mean lower taxes on your IRA money.Your plan should take advantageof your lowerretirement tax bracketas soon as possible. Simply waiting until 70 ½ is almost never the right plan.
Traditional IRAs tend to come with traditional planning, but un-traditional IRA planning will save money for you and your loved ones.
Tyler Lewis and Pat Schmidt