by Bob Carlson, Investment U Research
A 2011 Investment U White Paper Report
It's still too early in the game to know, but the consensus is that in the future our taxes will be higher.
Given such prospects, an obvious question arises for many people in or near retirement – should we sell assets now (or take other steps) to avoid higher taxes later?
I don't have a simple "one size fits all" answer. But I can share the key factors you need to take into account before making this critical decision. First things first, we have some time…
When We'll See Higher Tax Rates…
Higher tax rates aren't coming until 2012, at the earliest. Policymakers may even hold off an extra year (or two) on any increases, given the severity of the Great Recession.
Realizing that uncertainty never fosters prudent decision-making; there's no need to rush a decision.
We're better served by waiting a few months until we have a good grasp of what the rules will look like.
Then, once those details emerge, we can consider strategically selling assets in an effort to minimize the effect of higher taxes. Here's my gameplan for doing exactly that…
Qualified Retirement Plan Accounts
For starters, consider taking distributions from:
- Or any other qualified retirement plan.
To read this Investment U Research Report,
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