Time to start: Now - Financial ace can help you avoid high tax bill after retirement
Scott Garcia of Premier Estate & Income Planning said the sooner people begin planning for their retirement the better.
Garcia, 56, who has worked in the financial services industry for 34 years, opened his business, 2 Cityplace Drive in Creve Coeur, three years ago.
“We help people avoid probate; we set up power of attorney, living wills. We make sure people, if they’re incapacitated, can appoint someone to get access to their money.
“We also do, which is a big deal, tax-efficient retirement income planning.”
Garcia said he advises clients on how to pay fewer taxes on their retirement income.
“An IRA, 401(k), 403(b) or SEP is a great way to accumulate money, but it’s a terrible way to distribute it, because it’s taxable. It’s a terrible retirement plan, because you’re not in control of it.
“We show people how to make sure, the best way they can, that by the time they’re 65 or 72, they have as much tax-free income as possible.”
Garcia said a recent 65-year-old client with $200,000 in retirement funds was in line to pay $126,718 in taxes on those savings if he lived to be 90.
If, however, the client took advantage of tax-mitigation strategies, like a series of Roth conversions or other tax-free income vehicles, he would pay $44,000 in taxes, instead, Garcia said.
He said those nearing retirement age aren’t the only ones who can benefit from his services, including a free, no-obligation report that may help them plan for their retirement.
“I can run a report for someone who’s 35 or 62 or 79 – it doesn’t matter,” he said. “If you want to see how much taxes you can save in retirement, this (report) is for anyone.”
Garcia, formerly of Imperial, now lives in Oakville. He has two children – Marissa and Anthony.
