Retirement Planning

Key Questions,Tax Planning Drive Retirement Strategy

Creating tax-free income for clients

Financial planners typically ask clients about their financial goals, risk preferences, income sources and other questions to help select the right investments for their retirement portfolio. Most people believe that they can intelligently answer these questions and make informed decisions to help direct their financial planners’ choices.

In answering these questions, it is also important for people to understand how taxes, inflation, and how the flow of money works, as well as the short term and long term effects of their financial decisions says Barbara Meyers, CFP®, owner and president of Meyers Financial Group based in Irvine, California, “Additionally, it is imperative that people are asked the right questions by their financial planners,” she said, adding that she asks clients four key questions to help create the best customized financial planning solution for their specific needs.

Bucket1 300x400“First, determine the rate of return they need to earn on their savings and investments to retire at their current standard of living,” said Meyers. “Second, calculate how much they need to save regularly to retire at their current standard of living. Third, determine how long they have to work to retire based on what they are doing now financially. And fourth, if they don’t change what they’re doing, calculate how much they’ll have to reduce their standard of living during retirement to last over their life expectancy.”

Meyers, an Ed Slott Master Elite Advisor for over a decade, believes that tax planning and tax diversification are central to the financial planning process. Both current and future tax regulations affect how much and where clients position their moneys in their portfolio. In turn, this impacts not only one’s resources during retirement, but one’s liquidity to tap into when needed.

“As you know, tax levels, tax brackets, and tax laws continually change. Sure, they’ve decreased in recent years, however, tax laws have changed in the past and are likely to change again by 2025,” said Meyers. “A responsible financial plan remains current to these tax law nuances as they evolve.”

BM quote550x400There are several tools and strategies that financial planners can use to help clients reduce, defer, and eliminate taxes in retirement planning. For example, Revenue Code 7702, which applies to life insurance, has been around for more than 100 years. When used effectively, it enables money to accumulate tax deferred (like IRAs, 401k and 403b) within the life insurance policy, and can be withdrawn tax-free like a Roth IRA, while you are alive. Whatever is left over goes to the beneficiaries, also tax-free, Meyers explained.

“My goal is to create as much tax-free income for my clients as possible,” said Meyers. “I want to help them withdraw money from their qualified accounts in the most tax efficient manner; reduce the amount of taxes now and eliminate Uncle Sam as an unintended beneficiary, so that they have more income for retirement because it is not what you have but what you keep that is important.”

For more information on Meyers Financial Group, visit:

Meyers Financial Group. All Rights Reserved. Securities offered through Crown Capital Securities, L.P. Member SIPC & FINRA. Broker Check by FINRA


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