Michelle Boyce Discusses The Power of Tax-Free Income
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-w-michelle-boyce-ricp-vp-w-rosenzweig-financial-services-discussing-the-power-of-tax-free-income/
Michelle Boyce, VP of Rosenzweig Financial Services, to discuss the powerful concept of tax-free income. They explore the definition of tax-free income and its significant benefits, particularly for pre-retirees and retirees. Michelle explains how individuals can strategically plan their retirement income to maximize tax-free growth. By understanding the differences between tax-deferred, taxable, and tax-free income, listeners can gain insight into how to achieve greater financial security in retirement.
Tax-free income can significantly enhance financial security for pre-retirees by enabling them to withdraw precisely the amount they need without incurring additional taxes, thereby preserving more of their wealth for growth. This concept is crucial for individuals approaching retirement, as it directly impacts their financial planning and overall quality of life during their retirement years.
Tax-free income refers to earnings that are not subject to taxation upon withdrawal. This can include funds from certain retirement accounts, such as Roth IRAs, or cash value life insurance policies. The key advantage of tax-free income is that it allows retirees to access their funds without the burden of additional taxes, which can otherwise erode their savings.
When pre-retirees rely heavily on tax-deferred accounts, they often face a significant tax burden upon withdrawal. For instance, if a retiree needs $100,000 annually to cover living expenses, they may need to withdraw $125,000 from a tax-deferred account to account for taxes, effectively reducing the amount of money that remains invested for growth. In contrast, with tax-free income, they can withdraw exactly what they need—$100,000—allowing the remaining funds to continue growing without the impact of taxes.
The power of compounding plays a vital role in this scenario. By preserving more wealth for growth, pre-retirees can benefit from the compounding effect on their investments. The longer their money remains invested and growing, the more substantial their financial security becomes. For example, if a retiree can keep an additional $25,000 in their portfolio due to tax-free withdrawals, that amount can compound over time, leading to a significantly larger nest egg.
Access to tax-free income also provides retirees with greater flexibility in their financial planning. As Michelle Boyce points out in the podcast, tax-free income does not affect the taxation of Social Security benefits or Medicare surcharges, which can be impacted by taxable income. This means that retirees can better manage their overall tax situation and avoid unexpected tax liabilities that could arise from increased income.
Michelle Shared: “For the past 20 years I have been helping individuals plan and save for their retirement. I am excited for the opportunity to reach more people and have that same positive impact so they can have the peace of mind they are doing things correctly for their own goals and dreams”
About Michelle Boyce
Michelle has over 20 years of experience in Financial Services and her main goal is to always focus on her client’s long-term financial planning strategy to optimize retirement income.
She prides herself on analyzing a financial situation, finding any potential
issues, and creating adequate solutions to ensure her clients’ prosperous future. With her extensive insurance and planning experience, Michelle adds
great knowledge to the already specialized team at RFS.
She has worked in various capacities in the financial industry from being part of top producer teams to teaching new financial advisors through agency leadership. Michelle’s passion is to help educate consumers by taking complex financial strategies and explaining them in an easy way to understand the concept. Michelle is originally from Pittsburgh, PA and a graduate from Penn State University in Business.
She now resides in Boynton Beach, FL with her husband Rob, their two daughters Olivia and
London, and their three pets. When Michelle isn’t working with RFS’s clients or spending time with her family, she is likely exercising or on her Peloton, competing her way to the top of the leaderboard. Michelle has always loved sports as she grew up playing Basketball, Volleyball, and Softball. While living in Pittsburgh, she became part of Steeler Nation and that devotion has carried with her to South-Florida.
Michelle joined Rosenzweig Financial Services in October 2021 as Vice President, specializing in the professional marketplace.
Learn more: https://www.rfsny.com/
Registered representative of, and securities and investment advisory services offered through Hornor, Townsend & Kent, LLC (HTK), Registered Investment Adviser, Member FINRA/SIPC, 1 North Federal Hwy, Suite 201, Boca Raton, FL 33432. 561-314-3100, http://www.htk.com. HTK is a wholly-owned subsidiary of The Penn Mutual Life Insurance Company. Rosenzweig Financial Services is unaffiliated with HTK. HTK does not offer tax or legal advice. Always consult a qualified adviser regarding your individual circumstances.
Retirement Income Authority is not affiliated with HTK
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