As tax season approaches, here are more tips for baby boomers to enjoy their retirement years at the same time minimizing their tax bill. This week’s tips deal with how to take income in those retirement years from CD’s and savings bonds.
Using CD’s for income
Using income producing assets such as CD’s is a great way to produce income in retirement years. Boomers can reduce their tax bill from the interest income that the CD’s generate at the same time allowing other tax advantaged investments to remain.
Boomers redeeming their savings bonds set off all the deferred income tax due on the bonds at redemption. Boomers should wait to redeem savings bonds as long as possible to benefit from the continuous tax-deferred interest accumulation.
More tips to come next week until then as always keep your Business N Synergy.
Brian N. Stovallwww.thebricogroup.com