Assuming taxes will be less in retirement
Many will say they will make less in retirement and therefore be in a lower tax bracket than when they were working.
Earnings provide for lifestyle and I have yet to meet a person who wants a lesser lifestyle in retirement. In fact, most recent retirees will acknowledge that spending goes up for a time because it’s like every day is a Saturday.
Plus, the majority of retirees having deferred money as their primary source of income will have their income taxed at ordinary income rates – the highest of tax rates.
Not only that, but most retirees have lost many of their deductions in retirement – the mortgage interest, dependent exemptions and more.
Are you ready to do something about your taxes?