2. Consider Limiting Your Tax Exposure
There are fewer tax breaks on the horizon as you get closer to retirement, says Wayne Fisher of Fisher Financial Tax & Insurance Solutions.
If you’re saving money in a government-recommended retirement plan such as a traditional IRA, 401(k), or 403(b), you’ll eventually have to pay taxes on that money—and the tax rate may be much higher than you expect.
“Per David Walker, the former US Comptroller General, we’re heading to a future where we’ll have to double federal taxes or cut federal spending by 60%, which makes tax-free look pretty good, right?” says Fisher.