Six Tax Benefits Of Tax-Deferral That Help You Secure A Comfortable Retirement

~ By Rick Kelly, CSA ~

Taxes are one of life’s major expenses and one of many threats retirees face in trying to achieve a secure retirement!
One way to offset taxes in retirement is to add tax deferral into your plan!

Here are six benefits that you gain by using tax deferral in retirement:

  1. Reduce Your Current Tax Bill
    The interest, dividends and capital gains that you reinvest create unnecessary taxes. If you don’t need the earnings to live on, why pay taxes on them? By repositioning some of the assets into tax deferred assets, you won’t pay taxes on the returns until you actually withdraw the money!
  2. Increase Your Current Cash Flow
    By reducing your current tax bill, you’ve just reduced an expense which increases your cash flow!
  3. Can Reduce Or Eliminate Taxes On Social Security Benefits
    If 50% or 85% of your Social Security Benefits are taxable, simply defer the taxes on the on the investment income you don’t live on. Again, more cash flow!
  4. You Can Reduce The Taxes Caused By Your Required Minimum Distribution (RMD)
    If you’ve reached 70 . and own an IRA/401k, etc., you must withdraw your taxable RMD. Simply defer the taxes on the investment income you don’t live on, which can offset the taxes created by your RMD. Again, more cash flow!
  5. You Can Accumulate More Money
    Assuming a 28% tax bracket and a 3% return, in five years, $100,000 grows tax-deferred to $115,927 vs. only $111,277 in a taxable vehicle.
  6. Your Money Grows Faster
    To accumulate $115,927 at 3% taxable, it takes almost 7 years vs. only 5 years in tax deferral!
    The benefits of tax deferral provide you with yet another tool to help you secure a comfortable retirement!
Rick Kelly

Rick Kelly

Rick Kelly is a Certified Senior Advisor with Futurity First-Summit Financial Group in CO. He helps retirees to secure their retirements. To request A FREE “The Power Of Tax-Deferral Tool Kit” email him at rickkelly@ffig.com or call his toll-free 24-hour resource line now at 1-877-596-8233.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which products/investment(s) may be appropriate for you, consult with your attorney, accountant, financial advisor or tax advisor prior to investing or taking action.


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