Sexton Advisory Group Shares Tips on How to Limit Taxes in Retirement

Financial Consultant Steve Sexton Outlines Best Practices to Minimize Taxes in Your Golden Years

SAN DIEGO, Calif., May 17, 2022 /PRNewswire/ -- According to Steve Sexton, financial consultant and CEO of Sexton Advisory Group, diversifying your tax allocation in retirement is just as important as diversifying your investments to ensure you're comfortable in your golden years. With over 20 years of personal finance and retirement planning experience, Sexton shares his essential tips to minimize taxes in retirement.

• Fund a life insurance contract. "Proper tax planning takes into account reducing your taxes while you're alive, as well as after you pass away. Funding a properly structured permanent life insurance contract can help many individuals accomplish both. First, life insurance allows you to build up of cash inside the policy, that can be withdraw tax free. Second, a life insurance contract also allows individuals to transfer assets to beneficiaries tax-free." says Sexton.
  
  
• Utilize investments that provide a qualified dividend. "A qualified dividend is a dividend that falls under capital gains tax rates that are lower than income tax rates on ordinary dividends. Qualified dividends are taxed as capital gains at rates of 20, 15 or 0% vs. higher rates of 10-37% for ordinary dividends. The difference between ordinary and qualified dividends can be significant when tax time rolls around," adds Sexton.
  
  
• Understand how things are taxed. "Educate yourself on basic knowledge of how things are taxed and how you can set up investments to receive tax breaks," says Sexton. "For example, certain real estate investments allow individuals to write off depreciation, which deducts the cost of buying and improving a property over its useful life and lowers taxable income in the process," says Sexton.
  
  
• Fund a 401(k) or Roth IRA. "Lastly, consistently fund your 401(k) or Roth IRA monthly, which will offer you tax deferred or tax-free growth on contributions and earnings," says Sexton. "I recommend meeting with a financial planner to ensure you're optimizing these accounts as best as possible."

For more information on Sexton Advisory Group, please visit www.sextonadvisorygroup.com or follow along on Facebook at www.facebook.com/savingwithstevesexton 

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SOURCE Sexton Advisory Group