April means that it’s time to pay your taxes, and tax season can mean something completely different for those in or near retirement.
“Taxes might be your biggest expense in retirement,” explained Tom Jacobs, the founder and owner of Jacobs Financial Services.
“It is likely that within the next five to 10 years, our taxes are going to be going up, perhaps significantly up from where they are right now. And that puts all of us ‘Baby Boomers’ smack dab in that zone when it comes to retirement ,“ said Terri DeBoer, director of communications with Jacobs Financial Services.
When it comes to saving money for retirement, Jacobs explained that you don’t have to save your money in tax-deferred retirement accounts, such as a 401K. He said that there are other options like Roth IRAs and life insurance contracts where you can save money and pull it out later without having to pay taxes.
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