Tax Planning Versus Tax Preparation

Did you know that you can legally and ethically avoid paying unnecessary taxes by working with the tax code? With tax planning, you can avoid tax risk.Tax preparation is about being reactive while tax planning is about being proactive all year round every single year. Tax planning years in advance when done correctly, can massively change how much you pay in taxes.In this episode of the Secure Your Retirement podcast, we talk about the benefits of tax planning in the long term as opposed to tax preparation. Listen in to learn how to pay less tax on your income after retirement if you make the same as before or even more.In this episode, find out:●     The benefits of tax planning and being proactive in the tax calendar year.●     The big difference between tax preparation and planning – being reactive vs. proactive.●     Minimize tax on social security benefits by planning to get the money into a tax-free scenario.●     Why do many people make the same amount of income in retirement and even more?●     The importance of putting all your money in pre-tax retirement assets like the IRAs and 401ks.●     The importance of Roth conversions as part of your long-term tax planning goal.●     Plan for your surviving spouse to ensure they aren’t paying more taxes than they’re supposed to.Tweetable Quotes:●     “In retirement, taxes can change the situation drastically in your favor as well as cost you a lot of money.” - Radon Stancil●     “Roth conversions are a big way to start thinking about this long-term tax planning goal.”- Murs TariqResources:If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!To access the course, simply visit POMWealth.net/podcast.