When you’re nearing or in retirement, market dips feel personal — because now you’re not just managing money, you’re protecting your lifestyle. The good news? Even in a shaky market, there are smart tax strategies you can control.
Here are five practical moves to consider:
1. Use Tax-Loss Harvesting
If some investments are down, you might be able to sell them to offset capital gains elsewhere. This strategy can reduce your tax bill and help rebalance your portfolio — without panic-selling.
2. Bunch Your Deductions
With the higher standard deduction, many retirees don’t itemize. But “bunching” charitable gifts or medical expenses into one year can push deductions over the threshold and lead to bigger tax savings. One “bunched” year = bigger write-offs = bigger tax savings.
3. Be Strategic with Retirement Withdrawals
Avoid selling at a loss just to cover expenses. Instead, coordinate withdrawals from taxable, tax-deferred, and tax-free accounts to minimize taxes and avoid income spikes that can raise Medicare premiums. The order you withdraw money matters.
4. Consider Roth Conversions in Down Markets
Lower account values mean smaller tax bills on Roth conversions. Converting in chunks during downturns can offer tax-free withdrawals later. But be sure to plan the timing and amounts.
5. Make Tax Planning a Year-Round Habit
Smart moves aren’t just for tax season. Adjust throughout the year based on income, expenses, or changes in tax laws to reduce what you owe and stretch your savings. Don’t procrastinate!
Bottom line:
You didn’t build your nest egg to lose it to taxes. We help our clients create personalized, flexible tax strategies to stay ahead — even in unpredictable markets.
Let’s talk about your next move.
