Jeffrey Small Arbor Financial – An Overview of Tax-Saving Strategies for Retirees

Jeffrey Small Arbor Financial – An Overview of Tax-Saving Strategies for Retirees


Most people do not seriously consider the impact taxes can have on the returns of their lucrative retirement investment schemes. These individuals need to understand that they cannot avoid paying taxes to the Internal Revenue Service (IRS) even after they retire. The amount of money they are liable to pay to this statutory authority depends on the retirement income they receive.This is why it is imperative for them to implement certain post-retirement tax-saving strategies.

Jeffrey Small Arbor Financial – How to minimize the tax liability on retirement income?

Jeffery Small is a prominent financial advisor from Florida, USA, with years of valuable experience under his belt. He specializes in helping people successfully manage their investment portfolios so that they can enjoy comfortable retirement life. Currently, he is the President of Arbor Financial Services of Florida, Inc. This is a popular investment advisory service company with branches throughout the United States.

According to the Jeffrey Small Arbor Financial team of specialists, retirees normally have five income streams. These include their workplace pension fund, social security benefits from the government, personal savings, home equity, and retirement investment schemes. They can reduce the tax liability on these income sources by adopting the following tax-saving strategies:

Select a partial in-service 401(K) plan rollover

Most people participate in and make regular yearly contributions to the 401(K) plan which their employers sponsor. The schemes offer them a series of lucrative limited investment options to save money for their retirement. However, the investment schemes’ optimal returns attract high tax rates. Fortunately, they can legally avoid paying such high taxes on this income. They just have to transfer a portion of their retirement funds from the 401(K) plans to Roth IRA schemes.

Buying life insurance policies

Purchasing cash value life insurance schemes are a convenient way for people to keep aside sufficient funds for their retirement years. The premium amounts they contribute to these insurance policies are not taxable throughout their working lives. When these individuals retire, they receive regular paycheck son the basis of the cash values of their insurance policies. This income source is not subject to tax. Only the investment gains and the interest receivable on the schemes are taxable.

Acquire fixed index annuities

Fixed index annuities are a special type of insurance contract that offers people a regular income on their retirement. These schemes provide them with steady cash disbursement on the basis of their performance of specific stock market indexes like the Nasdaq. The premium contributions these individuals pay under the schemes during their working lives are tax-free. However, the payouts they receive after they retire are taxable in a lower tax bracket than other retirement investment schemes.

The Jeffrey Small Arbor Financial team of specialists sum by saying retirees can reduce the tax liability on their retirement income. This ensures their retirement income is enough to sustain a comfortable senior lifestyle in their later years with success! They just have to adopt tax savings strategies in their post-retirement investment portfolios. These include opting for partial in-service 401(K) plan rollover, buying cash value life insurance, or fixed-index annuities.

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