If you’re currently preparing for retirement, you’ve likely considered a host of different possible challenges, including market volatility, inflation and health care costs. However, there’s one issue that may present a bigger challenge than you expect. It’s taxes.
You may assume that taxes won’t be an issue after you stop working. After all, you’ll no longer be earning income. However, that assumption would be incorrect. The truth is that you could face tax liability on a wide range of income sources, including qualified plan distributions, investment income and even Social Security. Do you plan on leaving an inheritance to your children, grandchildren and other loved ones? If you’re like many retirees, you’ve worked hard to build a career, accumulate assets and raise a family. While it may not be enjoyable to think about your death, an estate can help you pass your legacy on to your family members after you die.
Of course, there’s nothing saying you have to wait until your death to distribute your legacy. It may be just as effective for you to give assets away to your family members while you’re still alive. That way, you can see your loved ones put your legacy to use. |
First Fidelity GroupWith more than 39 years of experience and knowledge, we've seen it all. We understand each client is unique and faces different challenges. Archives
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