April 15th is a day in America that many people dread. It’s the deadline that people have to file federal income taxes with the government without being hit with penalties. While people are busy trying to avoid the date, one financial planner wants people to know there is still time to make some sound financial decisions that will help those planning for their retirement, making March a great time for a market reality check.
“Rather than spend the time dreading the filing and paying of income taxes, look for ways to help ease that burden,” said Jeff Smith, a financial planner and owner of The Retirement Smith. “Especially for those planning for their retirement, there are numerous ways they can strengthen their retirement accounts and ease this year’s tax situation.”
For most people, there is always more that can be done to beef up their retirement savings. Many people are behind or falling short on what they will need to make it through the retirement years, especially considering the rising costs of things. According to the U.S. Census Bureau, 49% of all adults ages 55 to 66 have no personal retirement savings. They also report that 50% of women in that age group have no personal retirement savings, compared to 47% of men.
When looking at the stats, it’s clear to see that a lot of people are likely paying more in taxes than they should, because some of it could be diverted to retirement planning. Without the tools and information to do it, however, many are not aware of such possibilities and tend to overlook it. That’s one reason why The Retirement Smith is reminding people that now is the time to consider retirement planning strategies before filing taxes April 15th.
Some of the things that people should be considering right now include:
- Making last-minute IRA contributions for the 2025 tax year. This will put funds into retirement planning and ease one’s tax burden this year. Additionally, it’s wise to consider any Roth conversion opportunities that can be taken.
- Evaluating capital gains planning before filing, is a smart way to optimize tax liability and avoid any unexpected high tax bills. Doing this will also help with looking for ways to offset gains.
- Reviewing ways to engage in tax diversification strategies for retirement. This will help with avoiding Social Security tax surprises and ensure that retirement planning is on the right track.
- Focus on rebalancing retirement planning, rather than reacting. Retirement plans shouldn’t depend on a strong-first quarter performance, but rather consider a sequence of returns risk for retirees.
- Honing in on long-term strategies for retirement planning over short-term headlines. Emotional investing during the first quarter can create swings, making it better to focus on the overall picture.
“People can’t be expected to know how to handle their financial planning for retirement and how to lessen their tax burden,” added Smith. “That’s where working with professionals comes in and provides a solid return on investment. Let the experts help you navigate the field and set you up for security.”
The Retirement Smith serves those in the Fredericksburg, Va., area and beyond with individualized financial planning. Their motto is to treat people as they want to be treated, and they aim to ensure there are no gaps, that people have the answers and solutions they need, and that they will not fall short in their retirement years. They offer retirement planning, income planning, and life insurance. They provide a free, color-coded money risk analysis that focuses on the three major phases of retirement financial management: accumulation, distribution, and preservation. They also offer a Balanced Retirement book to help people plan for a successful retirement. Smith has recently joined with his wife, Jennifer Scherer, owner of Fredericksburg Fitness Studio, to create a podcast that focuses on fitness and finances. For more information or to schedule a complimentary consultation, please visit our website at: https://www.theretirementsmith.com/.
