Skip to Content
Investing Specialists

How to Avoid Blowback From 'The Tax Torpedo'

Limiting the taxation of Social Security benefits is another reason to aim for tax diversification.

Stocks are hitting new highs by the day, and bond yields are miserly. Could you blame any pre-retiree or retiree for feeling nervous? Even though account balances have trended up nicely since the market bottomed four years ago, the key ingredients for strong future portfolio performance look disappointing.

At times like these, an investor's best friend is a checklist of what she can truly control. That means crafting a sensible asset-allocation plan, making sure your planned in-retirement spending rate is reasonable, and limiting investment-related costs at every turn. It also means paying close attention to how taxes affect your assets and your spendable income.