4 Buckets of Retirement Planning
On this episode of Better Money Atlanta, Joel Johnson, CFP® discusses the Bucket Strategy of retirement planning.
Think of your money as different buckets – they are taxed different and hold different things. Learn more about each of the 4 buckets below:
Taxable Assets
The Taxable Assets bucket is home to CDs, Nonqualified Mutual Funds, Real Estate, and other financial assets. These are subject to taxation by the government.
Tax-Deferred Assets
In the Tax-Deferred Assets bucket, you can find 401(k) and 403(b) Plans, and other retirement accounts like IRAs and deferred annuities. These plans are not taxed until money is taken out.
Income Tax Free / Estate Taxable Assets
This bucket includes Roth IRAs and Municipal Bonds. With these, you do not pay income tax when you are spending retirement. If you are early enough in your retirement planning, have some assets positioned in this bucket.
Income Tax Free / Estate Tax Free Assets
Life Insurance Trusts, Charitable Trusts, and Irrevocable Trusts are in this bucket. If you have more than enough money to retire, get some money out of your estate and into some of these trusts.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
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Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
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