[Nov. 11, 2020 – Alpharetta, GA] – One of today’s leading financial planning companies, Merit Financial Advisors, recently announced some of the best ways people can work toward achieving a nearly tax-free retirement. These days, with more expenses mounting for many Americans than ever before, saving every little bit on taxes helps.

As one of the leading financial planning services, Merit Financial Advisors offered several tips to prepare for the coming year taxwise and reign in the amount of taxes retirees will need to pay, including:

• Invest in a Life Insurance Contract: The best tax planning addresses reducing taxes while a retiree is alive, as well as after they pass on. By investing in a reliable life insurance plan, retirees can often take care of two things at once. This is because some life insurance plans enable them to build a tax-deferred cash base inside their policy, in addition to allowing individuals to transfer assets to beneficiaries without being taxed.

• Invest in a 401k or Roth IRA: By investing in a 401k or Roth IRA that can be funded each month, retirees can garner tax-free savings on earnings and contributions. It’s important to note that the recent COVID stimulus package enabled individuals to withdraw funds from their IRA or 401k without a penalty, but these funds need to be paid back or included on annual taxes within three years.

• Understand Taxes Inside & Out: Having a clear understanding of how taxes will affect retirees is one of the best ways to become tax efficient and to plan for a better retirement. There are many different ways to set up investments that offer tax breaks, such as real estate investments and other things.

• Invest in Items that Provide a Qualified Dividend: When investing, choosing items that fall under capital gains tax rates is important because they’ll offer lower income tax rates than ordinary dividends.

About Merit Financial

Merit Financial Advisors specializes in divorce services, wealth management, financial wellness, and more. For more information about planning a tax-free retirement, contact them online today or call (866) 628-3508.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Merit Financial Group, LLC, an SEC registered investment adviser. Merit Financial Group, LLC, and Merit are separate entities from LPL Financial.