“Am I paying too much in taxes?” You may be asking yourself that, and with retirement on the horizon, it’s more important than ever to do everything you can to assess and reduce your tax burden.

While many pre-retirees like to focus on basic retirement account contributions, there are several lesser-known tax-efficient opportunities that could make a significant difference in your ability to retire comfortably and on your own terms.

Let’s look at a few tax-smart strategies that can help preserve the wealth you’ve worked so hard to build:

1. Timing Your Social Security Benefits

One of the most overlooked opportunities for tax optimization is the timing your Social Security benefits. Did you know that up to 85% of your Social Security benefits could become taxable? That is, if your provisional income exceeds certain thresholds.

You could save thousands in taxes simply by adjusting when you start your benefits and coordinate them with your other retirement income sources.

By thoughtfully aligning your retirement account withdrawals, investment income, and Social Security timing, you can potentially reduce the taxation of your benefits and maximize your after-tax income in retirement.

2. Optimizing your Investment Location

While it’s important to focus on investment allocation (what you invest in), investment location (where you hold different investments) can also significantly impact your tax efficiency. Consider this like arranging furniture in your home – each piece has its ideal place for maximum functionality.

Why? Different investments generate different types of tax consequences:

• Some create ordinary income
• Others generate qualified dividends
• Some produce tax-free income

Positioning your investments in accounts with complementary tax treatment gives you the best of both worlds — helping you reduce your overall tax burden while maintaining your desired investment strategy.

3. Reducing Taxes for Generations with Tax-Efficient Legacy Planning

Like many of our clients, you’ve worked hard to build your wealth. But have you considered how taxes might impact your ability to transfer that wealth to future generations? Many successful professionals approaching retirement focus solely on minimizing their current tax burden without considering the tax implications for their heirs.

Thoughtful legacy planning can help:

• Maximize wealth transfer efficiency
• Reduce estate tax exposure
• Create tax-advantaged income streams for multiple generations

Incorporating legacy planning early into your plans for retirement can help ensure your wealth transfer goals are met while minimizing tax impact across generations.

4. Exploring the Tax Benefits of Owning Real Estate

Many successful professionals we work with are surprised to learn about the powerful tax advantages real estate can offer in retirement. Properly structured real estate investments can provide both tax-advantaged income streams and potential tax reductions.

Consider these opportunities that many investors overlook:

• Depreciation deductions to offset current income
• 1031 exchanges for tax-deferred portfolio growth
• Opportunity zone investments for long-term tax benefits
• Strategic timing of property sales to maximize after-tax returns

We’ve seen how structuring our clients’ real estate holdings to help create reliable retirement income can significantly reduce their annual tax burden. The key was not just owning real estate but positioning it strategically within their overall retirement plan.

5. Deciding How to Exit Your Business

If you’re a business owner approaching retirement, know that how you structure your exit can be one of the most significant financial decisions you’ll make.

Whether through strategic business succession planning, qualified retirement plans, or deferred compensation arrangements — each option presents unique tax implications that should be carefully evaluated as part of your comprehensive retirement plan.

Creating Your Tax-Smart Retirement

While these techniques can be powerful, implementing them effectively requires careful coordination and planning.

The key is developing a holistic approach that considers:

• Your current tax situation
• Future income needs
• Market conditions
• Legacy goals
• Risk tolerance
• Insurance products

More importantly, these solutions should be reviewed and adjusted regularly as tax laws, market conditions, and your personal situation change.

Next Steps: Personalized Planning

Every pre-retiree’s situation is unique, which is why cookie-cutter approaches often fall short. Consider scheduling a complimentary consultation with Intelliplan Financial to explore how these and other tax-smart strategies might fit into your retirement plan.

Our team will take the time to understand your specific situation and help you develop a personalized, holistic retirement plan to consider all these factors and more.

Disclosure: Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC-registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Intelliplan Financial and PCA are separate, non-affiliated entities. PCA does not provide tax or legal advice.