When people do well in life, a lot of time they end up with highly appreciated assets such as real estate, businesses, and securities or stocks & bonds.
When you make the decision to retire or liquidate, this can come with some extremely high capital gain taxes which is a big problem for future planning.
Charles Jewett from Renovating Retirement says that in Hawaii where it is quite the trend to just buy properties, he sees people that have delayed liquidating just because of the capital gains taxes!
“When I take someone from owning a pile of rentals to retirement”, says Jewett, “I say it’s basically taking someone from tenants and toilets and to cruises and cocktails.”
The use of a Deferred Sales Trust gives you the ability to control your capital gains tax exposure, reinvestment terms, and installment payments made from a third-party trust.
Many factors play a role in picking the right deferred income strategy for retirement.
Education and information from Renovating Retirement can help you make decisions that are right for your unique situation.