Fixed income – two words that individually generally connote good repercussions, as fixed stands for constant and income represents survival. Together though, and one might conjure up images of living solo in a small one room apartment and waiting impatiently for the first week of each month when your paltry pension check and Social Security check arrive.
Hopefully your days of fixed income will surpass the previous image but even if it does, there is still another dreaded word out there for those living on a strict budget – and that is “taxes”. The amount of taxes paid by retirees can often determine the quality of their retirement, so it is important to know how to manage and understand all you can about them.
A flood of topics need to be addressed on this very delicate subject as you head to your retirement years. Even if you have ample wealth, taxes still need to be covered, including IRAs, filing taxes in NC, charitable contributions, tax strategies for retirees and more.
Whether or not you are headed towards a fixed income future, one way to make the most of it is to understand your tax responsibilities.