Financial Tip of the Week with Steve Sexton: Smart Tax Planning and the “3 Bucket Approach”

The San Diego Entertainer’s own financial expert, Steve Sexton, provides the Channel 6 San Diego Living Show with a financial tip every Tuesday. Today Sexton talks about tax planning and how the “3 Bucket Approach” can save you money. 

Most retirees have all their income flowing into one bucket, and that bucket is utilized to determine the taxes they will owe to Social Security. A loss of control comes when you are not utilizing or investing this money and it all funnels directly onto your tax return.

Informed retirees take the income they need now, leave it in the “Now Bucket” and invest the rest in the “Future Bucket” and the “Estate Bucket.”

“Future Bucket” investments are based on long-term wise investment decisions and tax-deferral/tax-free income strategies.  This bucket has a “spicket” that allows money to be used when needed. Also, money in the “Estate Bucket” can be protected from incurring taxes and made available for the “Now Bucket” or “Future Bucket” at any time.

Separating your money into 3 Buckets will benefit you with: wider investment choices, higher rates of return, lower taxes, lower risk, money for emergencies and peace of mind. Sexton says, when you have a catered plan like this, you can rest knowing you are making smart financial decisions and using wisdom in your tax planning for the future.

Sexton reminds you, “Smart financial decisions do impact the quality of your life.”

Steve Sexton is a financial expert who personalizes each financial plan to the individual’s unique circumstances and goals. He has over 15 years experience in the financial services industry and holds multiple licenses and designations including being a Better Business Bureau member and a National Ethics Bureau Member.

If you would like to learn more about smart tax planning or to reserve a spot in one of Sexton’s free financial workshops you can visit www.sextonadvisorygroup.com. Or you can reach the Sexton Advisory Group by contacting Steve Sexton at steve@sextonadvisorygroup.com or by calling 951-695-8810.

Don’t forget to watch Steve Sexton on the Channel 6 San Diego Living Show every Tuesday for more financial tips!

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