1. “Pay taxes on the seed, not the harvest.”
When you invest in Roth IRAs and 401(k)s, you pay taxes on the money you contribute. Because you already paid the tax, no tax is collected when the money is taken back out.
2. Convert IRAs into Roth IRAs.
Make after-tax contributions now, and you will enjoy tax-free withdrawals during retirement.
3. Convert 401(k)s into Roth 401(k)s.
Make after-tax contributions now, and enjoy tax-free withdrawals during retirement. As an added bonus, companies often match some or all of the money you invest.
4. Utilize 1031 exchanges on Real Estate.
There is a 6 month window to prevent payments on capital gains taxes. When exchanging one investment property for another like property, section 1031 of the IRS code allows the capital gains tax to be deferred when certain criteria are met.
5. Buy convertible term life insurance in order to lock in health insurability.
The younger you are when you first get life insurance, the better chance you have of locking in lower rates before developing an age-related illness.
6. Refinance to a 30-year mortgage on your primary residence at current low interest rates.
Current interest rates are close to their record low level. This is a good time to renegotiate your mortgage to save on monthly payments, reduce the interest you will pay over the life of the loan, and free up cash flow.
7. Buy long-term care insurance before it’s too late.
Over 60% of bankruptcies filed in North America are the result of medical issues and the high cost of medical care. The median cost of a semi-private nursing home room is now close to $90,000 per year. If you are over 65, depending on your health you may already be ineligible for long-term care insurance.
8. For estate planning purposes, put your life insurance into a trust.
With proper estate planning, it will not be taxable in the event of your death.
9. Be careful when choosing an annuity.
Some annuities can carry high fees. Annuities are not FDIC insured, so you need to trust the company. Buy only from top-rated insurance companies with sufficient financial backing.
Aiken native Wylie Haislip grew up in the family business — True Value Hardware — where he developed relationships with the community that will last a lifetime. A natural salesman, he delights in providing goods and services to his clientele. Wylie also has many years of experience managing personal portfolios and has invested through rocky economic climates in real estate and stock markets.
The tips provided are the writer’s opinions and do not constitute financial advice. Bella Magazine does not provide financial guidance, and recommends that you consult a qualified investment professional for recommendations in your own situation.
