Engineering Your Tax-Free Retirement
What you'll learn
- How to chart your roadmap to a tax-free retirement
- Topics covered include personal finance concepts, framework for achieving ~0% tax rate, and investment options
- Deep dive into IUL, Annuity and LTC investments
- McKinsey-grade presentation material, available for download
- Retirement planning calculator, available for download
- Fact-based learning and insights derived from quantitative approaches
Investment return/risk and tax efficiency, though not correlated factors, both affect the growth of investment assets and income. In investment planning, investment return/risk usually receives all the attention, but, in reality, when strategizing and planning for long-term asset growth, both factors are equally important. Even in today’s historically low-tax environment, a single person (who is a CA resident and pulling at least 160K in retirement income) will pay 40 cents on the dollar in marginal tax rate when withdrawing from their 401k or traditional IRA account during retirement.
But did you know that you can optimize your tax rate in retirement to nearly zero?
In this course, we will establish a foundation for the goal of achieving optimal tax efficiency during retirement, and then we will take an in-depth look at investment options that work best in achieving this goal. In particular, we will look at investment options that mimic market growth, protect principal, scale performance to the risk incurred, and that provide a lifelong pension while also growing in value, and from which distributions may be taken tax-free.
We will learn how inflation, taxes, compounded growth, and volatility each affects investment income and growth. We then look at a macroeconomic view at Social Security and Medicare. Based on our understanding of all these factors, we will develop a framework for how to optimally allocate your savings into various tax buckets. And we will again review investment options designed to generate tax-free stable income streams during retirement. As a practical exercise, using an engineer as a sample working professional, we will go through the investment profile of a work and retirement life, as it responds to various changes in income and expenses.
Who this course is for:
- Working professionals in their 30s, 40s and 50s
FinCrafters was founded on the dual mission to educate our community of clients about topics pertaining to personal finance and to help them strategize and implement a tax-free retirement plan.
FinCrafters began as a personal passion that turned into a professional pursuit. I relish deriving insights using quantitative approaches. I enjoy pairing down complex abstract ideas to simple practical insights and communicating them. For example, how do you holistically think about savings, taxes, investments, retirement needs, etc. with personal situations such as college or estate planning factored in? I agonize over strategizing such scenarios.
I am an engineer by training and through business education from Cornell and management consulting experience learned how to think holistically, work analytically, while also being practical and able to communicate well.