lower taxes Archives - Jerry Golden on Retirement

The 9% Solution: An Expert Guide to Retirement Tax Breaks That Could Cut Your Tax Rate Nearly in Half

June 1, 2026 By Jerry Golden in Annuity Tags: 9% solution, Jerry Golden, lower taxes

Incorporating housing wealth and lifetime annuities in your retirement income plan can offer a significant tax-cost advantage over a traditional investment-only plan.

Editor’s note: This is the fourth article in a five-part series about all-asset retirement planning that is covering such topics as using lifetime annuities and housing wealth, making the most of tax benefits and managing investment portfolio risk. The first articles are: It’s Time to Redefine Retirement for Retirees With $500,000 to $5 Million, Unlock Housing Wealth and Tax Benefits by Adding Lifetime Annuities to Your Retirement Plan and Does Your Retirement Plan Ignore Half of Your Net Worth?

So many details factor into retirement planning: Income needs, how much to leave to heirs, protection against long-term care costs and, just as important, leisure and travel.

And then there are taxes.

Don’t read this article for advice on avoidance. Taxes must be paid. You can exert some control over how much you pay, however, and when you pay them.

Retirement Accounts Are Taxed Differently. Plan Accordingly.

August 17, 2023 By Jerry Golden in Income Allocation Tags: Income annuities, lower taxes, retirement income

When you plan your retirement and do not distinguish between accounts with pre-tax and after-tax savings, you are likely to make less-than-optimal choices of financial products and product allocation. The wrong choices could lower your spendable income and after-tax legacy.

As you formulate your plan for retirement, you may be pleased with the amount of money saved over your working life and now invested in your after-tax investment accounts, IRA/401(k) accounts, and as equity in your house. Yes, you can convert your savings to income in a variety of ways, but how you plan and allocate income among investments and annuities — and between accounts — can enhance your ability to take vacations, make gifts, provide healthcare and generally support your lifestyle for the rest of your retired life.

I’ve said before that while planning for retirement income is not rocket science, there are literally trillions of potential plans you could design with your advisor. Naturally we want to make it easy for you to choose one — without a degree in investment management or actuarial science. However, there’s one area we can’t oversimplify: Do not treat all your savings alike in creating your plan.

Retirement Income Plan — Better Than a Pension?

April 6, 2021 By Jerry Golden in Income Allocation Tags: annuity payments, better than a pension, Income allocation, Income annuities, Jerry Golden, lower investment fees, lower taxes, retirement income

For two generations, people have been saving for retirement. Originally, indirectly by their employer; and then on their own.

After WWII, the middle class of the Silent Generation enjoyed a great economy and often also benefited from the company pension, which promised to guarantee secure income in the after-work years.

Baby Boomers began to lose pensions as an employer benefit but gained the IRA and 401(k), which required them to save on their own with in some cases an employer-matching contribution.

Now there are tens of millions of Boomers with trillions of dollars in these qualified savings accounts invested in stocks, bonds and cash, and several trillions of dollars of equity in their homes. Unlike the pension era, these Boomers have to decide how to convert those savings into a lifetime of retirement income.

A recent article in Employee Benefit News points out that “traditional retirement plans aren’t enough to secure a worker’s financial future anymore.” Instead, everyday employees need help not only with savings, but often with unexpected health care costs and other emergency expenses.

Name Your Plan – Select Both Retirement Income and Legacy Target

March 6, 2021 By Jerry Golden in Income Allocation Tags: annuity payments, income all, legacy plan, lower fees, lower taxes, Name your plan, Retirement Planning

You know how much income you need and what kind of legacy you want to leave, but what you don’t know is if you might be able to hit those targets. Here’s one way to find out.

Everyone has retirement goals, but the big question is, are they attainable?

Take the 70-year-old woman I wrote about recently. She has $2 million in retirement savings, and she’d like to use those savings to generate $70,000 in annual income increasing by 2% a year early in retirement, but still be able to leave her heirs a $2 million legacy at age 90. Can she do it?

That’s a question many financial advisers might have trouble answering, but after seeing the results of many, many plans over the years, I believe I’ve created a method that can answer her question using Income Allocation planning. While her legacy results will depend on market returns, this planning method incorporates annuity payments into the mix and lowers costs and taxes to deliver reliable income.