Adding Tax Diversification to Your Retirement Portfolio

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Have you ever considered the possibility that you may earn a higher income after you retire than you have now?

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It sounds crazy, I know, but it’s not as uncommon as you might think. That’s where tax diversification comes in.

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What Is Tax Diversification?

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Tax diversification for retirement can include one or more of the following assets: Roth IRA, non-tax sheltered investments, and real estate.

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Roth IRA

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In addition, if you do not begin withdrawing funds until after you turn 59 ½ – and if you have had your Roth IRA for at least five years – there are also no income taxes levied on your investment earnings either.

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They provide you with a tax-free source of funds that will help you to minimize the amount of taxable money you withdraw from your retirement plans.

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Adding Tax Diversification to Your Retirement Portfolio

Have you ever considered the possibility that you may earn a higher income after you retire than you have now?

It sounds crazy, I know, but it’s not as uncommon as you might think. That’s where tax diversification comes in.

What Is Tax Diversification?

It’s a strategy that involves putting your investment funds into more than one type of holding, based on how and when they are taxed.

Tax diversification for retirement can include one or more of the following assets: Roth IRA, non-tax sheltered investments, and real estate.

Roth IRA

You don’t get a tax deduction for making a Roth IRA contribution the way you would if it were a traditional IRA. But, that also means that the contributions will not be taxable when they’re withdrawn.

In addition, if you do not begin withdrawing funds until after you turn 59 ½ – and if you have had your Roth IRA for at least five years – there are also no income taxes levied on your investment earnings either.

They provide you with a tax-free source of funds that will help you to minimize the amount of taxable money you withdraw from your retirement plans.

Non-Tax Sheltered Investment

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