Tax Advice Professional Question

If you’re looking for tax optimized withdrawal strategies, but don’t want to pay for any investment advice, find a pay for plan CFP.

In my experience CPAs are wired to be too short sighted and care far more about immediate tax savings/low taxes rather than total tax savings over time.

My retirement was relatively short notice, but not unplanned. My company recently changed a policy to let us keep hospitalization post retirement at the same cost. So basically, I turned 59 1/2 and decided to crunch some numbers which came out favorably.

I will self fund my retirement with my 401K until 65 and then draw pension. Full retirement age for me is 67, so that is when I will draw social security.

I don’t have a CFP, as I don’t think the $20K - $50K per year would nearly be worth the price. I have done very well with my investments through the years.

I have read pretty extensively online, but have periodically found things there that I know aren’t true. As a result, I want a professional that I can occasionally consult when I have questions. As I see it, my biggest risk would be making a mistake regarding taxes.

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A big part of it is what state you end up in and the tax implications there

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Luckily, Mississippi just voted to eliminate the state income tax!

Coupled with moderate property tax makes me likely to stay here.

Thanks

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I don’t have a CFP, as I don’t think the $20K - $50K per year would nearly be worth the price. I have done very well with my investments through the years.

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You don’t have to pay for the investment guidance. You can pay $3-5k depending on the plan and get something to follow for a few years at a time. You can never pay again if you don’t think it’s worth it.

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Look at some tables. If you live to be 77 or more, your way is the best. If you die earlier, taking SS at 62 is best. I don’t need the money to live on so I’m taking at 62 and investing.

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taking early when you don’t need the money is more often than not a bad decision unless your health is a problem. The guaranteed growth on SS payments is very difficult to clear with certainty in investments over the relatively small time frame.

Good luck.

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In my experience CPAs are wired to be too short sighted and care far more about immediate tax savings/low taxes rather than total tax savings over time.

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That’s because thats what most clients demand. Plus fluidity of tax legislation steers professionals that way.

Edit: OP, if your main concern is tax, consult a CPA. Preferably one that also does financial planning/wealth management.

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don’t think I have the best actuarial odds of living to be 80. I am “healthy”, but I have had open heart surgery so I’m not low risk for cardiovascular events.

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Gotcha. Everyone is different for sure.

On other hand, wait too long to draw down traditional retirement accounts and you face RMDs, more tax on SS, IRMAA, and widow penalty (single tax rate on our combined RMDs plus pension and SS would be higher) I intend to convert as much as I can to Roth during early retirement years before drawing SS. There's a few software/app solutions that will model/suggest optimized withdrawal strategies but I havent decided which to try. I've also considered a fee only financial advisor but not sure how to choose a good one familiar w tax optimized withdrawal strategies.