Forbes has published an article, “How Will 10 Types Of Retirement Income Be Taxed?”, which discusses smart planning with regards to retirement income strategies. The article begins as follows:
When you are planning for a retirement income you can’t outlive, you must not forget about taxes. How much you will owe in taxes during your retirement years will depend on a combination of how your retirement income is generated and the dollar amount of your retirement income stream. Sadly, many pre-retirees forget about taxes when looking at a projection of their Social Security benefits or how much income their 401(k)s may generate at some point in the future.
In a perfect world, you would be able to have the same, or more, after-tax income in retirement. Some people reading this will retire with more potential income in retirement. On the other hand, many Americans are behind in saving for retirement and will likely have trouble making their money last or maintaining their standard of living as they age in retirement.
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal