Press
10/10/24
Certified financial planner Cody Lachner said this is also the time to consider any changes the benefits adjustments will have to your tax bracket. For example, getting more benefits may affect your income tax.
“The formula which determines how much of your Social Security benefits that are taxable does not increase with inflation, so you may find that the higher benefits post-COLA increase your tax bill,” Lachner said.
6/8/24
Taxes are a key discussion point too. “Your adviser should also be able to provide guidance on income taxes and create a tax-efficient spending plan to ensure that you’re meeting your spending needs in the most tax-efficient manner,” says certified financial planner Cody Lachner at Next Adventure Financial.
Furthermore, a good adviser will also analyze how certain contingencies would impact your plan. “This could include things like needing long-term care, changing tax regulations, death of a spouse, medical issues, stock market declines and more. All of this will provide you with a better understanding of your long-term preparedness and your ability to safely meet your goals,” says Lachner.
1/17/24
The tax savings from Roth IRAs can help you build a tax-efficient retirement plan. “Having access to a bucket of money that is not subject to income tax means that a person can be very strategic with how they structure their retirement income,” Lachner said. Money in retirement that comes from pensions, Social Security, traditional IRAs and 401(k)s can increase taxable income. Roth IRA withdrawals can be a tax-free source of retirement income as long as the criteria are met.
1/17/24
Crypto also counts as an income source. “Some crypto exchanges do not send tax forms to investors so it’s up to you to download and report those to the IRS,” said financial planner Cody Lachner…
1/13/23
Another frequently overlooked income source? Crypto. Although most investors probably lost money on their crypto bets in the past year, any profits taken from positions will need to be reported as well, said Cody Lachner, financial planner….
“Some crypto exchanges do not send tax forms to investors so it’s up to you to download and report those to the IRS,” he said.
8/12/22
Now is the time to create a tax plan around your current and future income, said Cody Lachner…
“Your 50s are a crucial time to take advantage of various tax strategies,” he said. “This all begins with knowing what your tax situation looks like today and what it’s projected to be in the future.”
He said getting a handle on this now will allow you to know where it makes the most sense to save your money — i.e., tax-deferred accounts like 401(k)s and IRAs, Roth 401(k)s and Roth IRAs and/or taxable accounts.
12/21/22
If you have a brokerage account, consider liquidating investments that have declined in value. A capital-gains loss of up to $3,000 can be used to offset investments that earned you income — or money from a job.
“Tax-loss harvesting can be a great opportunity to adjust your portfolio while receiving a tax benefit,” said Cody Lachner, a financial planner based in Indianapolis. “Ask yourself, ‘do these investments still fit with my overall strategy?’ If not, selling those investments may be beneficial,” he said.
3/20/25
Bond mutual funds and newly issued individual bonds “become more appealing to investors as interest rates rise because you can earn more income,” said Cody Lachner, a certified financial planner… However, bond values move inversely with interest rates…
But whether it makes sense to buy bonds now “depends on your income needs, current level of diversification and risk tolerance,” Lachner noted.
