Tax Planning Insights

A thoughtful withdrawal strategy is crucial for effective tax management and long-term financial success.

Perhaps you…

• Are uncertain about how different income sources are taxed
• Want to avoid penalties or unexpected tax surprises
• Hope to prevent unnecessary increases to your Adjusted Gross Income (AGI)
• Simply want a clear plan for which accounts to draw from, and when

No matter your situation, understanding the tax implications of your withdrawals is a cornerstone of sound financial planning. That’s why I am sharing this “Taxation Guide to Withdrawals & Income Sources”—a resource designed to clarify tax treatment, penalties, AGI impact, and key planning considerations for each withdrawal source.

Financial Planning Considerations

Maximizing Your Employer-Provided Benefits

Your employer-provided benefits are a vital component of your overall financial plan. Making the right elections can help you protect your family, optimize your savings, and align your benefits with your long-term goals. However, navigating these options can feel overwhelming, especially when you want to ensure that each choice supports your unique financial needs.

You might be wondering:

• Are your employer-provided retirement plan selections truly optimized for your risk tolerance, goals, and diversification needs?
• What are the implications of adding your spouse or dependents to your employer-sponsored medical insurance?
• Does your current disability coverage coordinate with your emergency reserves, especially when considering the elimination period?

Whatever your situation, understanding the full scope of your benefits—and how they integrate with your broader financial plan—is essential. With the right guidance, you can make confident, informed decisions that maximize the value of your benefits.

To help you get started, there is a comprehensive checklist outlining 17 key considerations fundamental to an effective employer-provided benefits review. This checklist will help you:

• Identify opportunities across retirement, medical, life, and disability insurance
• Coordinate your employer benefits with your savings, funding, and tax planning needs
• Assess the impact of your choices on your overall financial plan

While this resource is designed to help you spot opportunities and ask the right questions, Next Play Financial is available to discuss your specific situation and help you determine the best path forward.

Let’s ensure your benefits are working as hard for you as you do.

Market Perspectives

If you are retired or getting close to retirement age, making sure your savings will last is crucial. Over the past few years, inflation has made this harder by reducing how much your money can buy. Today, costs remain high for things retirees spend the most on, like healthcare, housing, and everyday items.

While investments like stocks and bonds can help address this challenge, some retirees prefer to avoid risk. Others worry whether their savings will be enough as living costs increase. For anyone planning a long retirement, it is important to understand how rising prices affect your income and how to set up your investments to maintain your buying power.