Jeff Stukey discusses his approach to helping his clients create a savings plan that makes sense for a successful future based on his proprietary “aging science” approach, which impacts longevity.
Listen to the interview on the Business Innovators Radio Network
Many people think that retirement planning and tax planning are the same, but some essential differences exist. When it comes to retirement income, there are three main sources: Social Security, pensions, and savings. And each one is taxed differently. Here’s a look at how retirement income and tax planning are different.
Social Security benefits are not taxed if the only income source is Social Security. However, if someone has other sources of income (such as a pension or savings), up to 85% of Social Security benefits may be taxed.
Pensions are taxed as ordinary income. That means that someone in the 25% tax bracket will pay taxes on their pension at that rate.
Savings, such as 401(k)s and IRAs, are also taxed as ordinary income. However, one exception is that Roth IRA withdrawals are not taxed.
Stukey says, “As you can see, there are some significant differences between how retirement income and taxes are treated. And it’s important to understand these differences when planning for retirement. One way to mitigate the risk of higher taxes in retirement is to consider a Roth IRA conversion. With a Roth IRA conversion, you convert your traditional IRA into a Roth IRA. This involves moving your money from a tax-deferred account to a tax-free account. The conversion will trigger a tax bill, but the money in the Roth IRA will grow tax-free, and you can withdraw it tax-free in retirement. So, even though you will pay taxes on the conversion now, you may save money in the long run, especially if tax rates increase.”
Stukey continued, “Wealthspan Advisors is a firm that is acutely aware of national and personal trends in health and wealth. We’ve identified and developed the tools needed to help maximize your wealthspan. We’re composed of experienced wealth management professionals who have spent over 30 years combined educating advisors and clients about proper wealth planning; and world-renown research scientists in the field of aging that are keeping track of developments in science and medicine and finding ways to utilize that information to help with both your health and wealth planning.”
Get a copy of their book, “Pursuing Wealthspan: How Science is Revolutionizing Wealth Management,” visit: https://www.wealthspanadvisors.com/
About Jeff Stukey
Jeff has been in the financial services business for over 20 years. Most of his time has been spent in executive-level roles helping train hundreds of financial advisors around the country on how to better plan for and serve their clients. He deeply understands financial planning and the financial products that can be used to create the desired outcome for clients. After watching his parents work hard but struggle financially for most of his childhood and early adult life, Jeff set out to help clients become more educated and get better advice to help them grow and protect their wealth so they could live their best lives. Because of the experience gained over the last 20+ years, Jeff has been able to communicate well with clients, understand what they are trying to accomplish, and help put them in a position to really thrive in and throughout retirement.
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Investment Advisory Services are offered through Wealthspan Investment Management, LLC, a state-registered investment adviser. The commentary is for informational purposes only and should not be deemed as a solicitation to invest, or increase investments in any Wealthspan Investment Management, LLC products, or affiliated products. The information contained herein is not intended to provide any investment advice or provide the basis for any investment decisions. Please consult a qualified professional before making decisions about your financial situation. Information and commentary provided by Wealthspan Investment Management, LLC are opinions and should not be construed as facts. There can be no guarantee that any of the described objectives can be achieved. Past performance is not a guarantee of future results.