Today I want to talk to hair salon owners about how you can actually lower your tax bill while you’re in retirement. Because if you’re approaching retirement or already in it, you should start planning now to decrease your future taxes.
Recently, a new hair salon business owner client visit our office. And she had a really good problem to have she had saved too much money. With most of her money in what’s known as a traditional IRA account, she was worried about the taxes. So she came to us wanting to know how to lower her taxes while she was in retirement.
Fortunately, there are many ways to lower your tax bill in retirement – all without doing anything illegal or unethical.
How is this the case, you’re wondering? Well, grab a cup of coffee and settle in to listen to the full episode.
Episode Highlights
[01:51] What are RMDs?
[03:56] The relationship between RMDs and taxes and why it’s advantageous to keep your income as low as possible.
[05:19] The two types of individual retirement accounts (IRAs).
[07:53] How to maximize your retirement gap years.
[08:26] How to optimize your Social Security benefits to increase income and lower your tax bill in retirement.
[11:29] What is a partial Roth conversion?
[12:49] How pension income can potentially impact your retirement plan and taxes in retirement.
[13:30] How to lower your tax bill in retirement using a real-life hair salon owner as an example.
[20:12] Tax planning opportunities if you work past age 70.
If you found this episode helpful, check out these episodes:
E2: The Difference Between Starting and Scaling a Hair Salon Business
E1: This Is What’s Holding You Back from Taking Your Hair Salon to the Next Level
