Trinity Financial Group

Tax-Reduction Strategy Services

Protect yourself and your assets from taxes in retirement.

Your Partner in Retirement Planning

You may stop working, but that doesn’t mean you stop paying taxes. In fact, taxes could be one of the largest expenses you pay in retirement. The good news is you can limit your tax exposure and potentially reduce your bill with forward-thinking planning strategies.


At Trinity Financial Group, we consider taxes in everything we do. From investment strategies to retirement income planning and even to estate planning, taxes can impact every aspect of your financial life. 


We develop and implement strategies to help reduce your tax exposure so you can enjoy more of what you love in retirement.

What taxes will you face in retirement?

The specific taxes you may face in retirement depend on your situation, but it’s likely that you will continue to pay income taxes after you stop working. Many common sources of retirement income are potentially taxable, including:


  • Distributions from retirement accounts like 401k plans, IRAs, profit sharing plans, and more
  • Social Security distributions
  • Annuity income
  • Defined Benefit Pension benefits
  • Wages
  • Business income
  • Rental property income
  • And much more


The taxes don’t stop with federal income taxes though. There are other taxes you could face depending on your financial situation and where you live. Some examples include:


  • State and local taxes
  • Property taxes
  • Medicare premiums
  • Capital Gains taxes
  • Sales tax
  • Gift taxes
  • Estate taxes
  • And more


Every dollar you pay in taxes is a dollar that can’t be used to support your retirement goals. We help you implement strategies that can potentially reduce your tax exposure and maximize your family’s financial wellbeing in retirement and beyond.

Retirement Taxes Cheat Sheet

Do you have a retirement tax minimization strategy?

Download our complimentary Retirement Taxes Cheat Sheet to learn more about taxes in retirement.

Download

How can you protect yourself from taxes in retirement?

Every client’s situation is unique, which means the strategies we recommend and implement vary from client to client. However, there are some general ideas and strategies that we frequently consider:

  • Retirement Income Planning

    Retirement income arrives in a few different forms when it comes to taxes.

  • Taxable

    This is income that is fully taxed as income as you receive it. Examples include distributions from 401(k) plans, traditional IRAs, 403(b) plans, profit sharing plans, wages, and more.

  • Tax-Free

    This is income that you receive in retirement and is not taxed as income. This includes distributions from eligible Roth IRAs, municipal bond interest, and potentially life insurance distributions.

  • Potentially Taxable

    This is income that could be taxable depending on a variety of factors. The most notable example of this is Social Security benefits, which can be taxable at different levels based on your overall income.


    You can manage your tax exposure by strategically planning how you take income from each type of source. For example, you can maximize your tax-free income and minimize your taxable income to lower your exposure. 


    You can also make a wide range of choices with regard to Social Security, especially with when you file for benefits. This can impact your taxable income and affect your overall tax rate.


    We help you navigate the complexities and implement an income plan that meets your objectives and manages your income tax exposure.

  • Investment Planning

    Your investment portfolio can significantly impact your tax exposure in retirement. There are many investment outcomes that affect your taxes, including:


    • Selling for a gain
    • Selling for a loss
    • Interest income
    • Dividend income
    • Investments with tax-free income like municipal bonds
    • Tax-deferred investment vehicles
    • And more

    Taxes are one part of the equation when it comes to investment management. Our investment management process weighs all factors, including taxes, risk management, and performance objectives to find the right portfolio and strategy and objectives.

  • Legacy Taxes

    Yes, you (or your family) could continue to pay taxes on your assets and earnings after you pass away. You could face:


    • Probate fees
    • Final year taxes
    • Taxes on taxable retirement accounts like 401(k) plans and IRAs
    • Estate taxes
    • And more

    A comprehensive estate plan is a critical piece of your financial puzzle. An estate plan can serve a few important purposes. It makes life easier for your loved ones because it provides them with clear instructions after your passing. It protects your assets after your death and even before you pass away. And it can even protect your health care wishes during your final days.


    Estate plans can vary greatly. We craft an estate strategy that meets your wishes and objectives and minimizes unnecessary costs after your passing. That maximizes your legacy and allows you to provide support for your loved ones even after you pass away.

What’s your tax minimization strategy?

As the saying goes, taxes is one of only two certainties in life. We can’t eliminate taxes, but we can help you prepare for them. Time is one of your most powerful assets. The sooner you start planning for future taxes, the more options you’ll have available.


Let’s start the conversation today about your tax minimization strategy and your overall financial goals. Schedule a consultation today and let’s start the process.

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