Advanced Tax Planning for Retirement
Our Services
Advanced Tax Planning
Tax planning is an important component of your overall retirement system. At Great Bay Financial Group, we look beyond this year's tax return to understand how today's financial decisions may affect your tax exposure throughout retirement. We coordinate tax-aware strategies with your income, investment, legacy, and risk planning so these decisions are considered as part of the larger retirement picture.
More Than Filing Your Taxes
- Has my tax situation changed from last year?
- Do I plan to do any gifting this year?
- Do I have any tax-related estate planning concerns?
- Are my investments positioned to minimize taxes on my earnings?
- Are my anticipated retirement income sources positioned to manage taxes — including the possible taxation of my Social Security benefits?
Planning for Taxes To (and Through) Retirement
Our process is to review not only your current tax situation, but also what your tax situation could look like throughout retirement. Our objective is to minimize your tax exposure to and through retirement, coordinating strategies such as tax-efficient withdrawal sequencing and, where appropriate, Roth conversions.
The Retirement Tax Blind Spot
If you're like most retirees, you may not have considered what your taxes could be in retirement, or you may be making the common assumption that you'll be in a lower tax bracket once you retire. Many advisors hand this question off to a "tax advisor," whose primary focus is reducing what you owe today. The challenge is that minimizing this year's bill and minimizing your lifetime tax liability are two different disciplines. Our team is trained to manage and help minimize taxes within a comprehensive retirement system for greater efficiency.
Frequently Asked Questions
Is Social Security taxable in Massachusetts?
Massachusetts does not tax Social Security benefits, but a portion of your benefit may be taxable at the federal level depending on your combined income, one more reason withdrawal sequencing matters.
When does a Roth conversion make sense?
Often in the window between retirement and required minimum distributions, when income (and your bracket) may be temporarily lower. It depends entirely on your situation, which is why we model it inside your retirement system first.
Do you replace my accountant?
No, we focus on long-range retirement tax strategy and coordinate with your tax preparer as needed.
Curious what your taxes could look like in retirement?
Schedule a complimentary conversation. Meet with us virtually or at one of our offices in Falmouth, Duxbury, or Mansfield.