This holiday season, Charlie Jewett from Renovating Retirement is giving us four gifts.  

Last week, it was the gift of clarity.  

He taught us that there are more tools than just the stock market.  

This week, he’s giving us the gift of lower taxes.  

“Most people get a surprise when they reach retirement….when we start taking money out of IRA’s and 401k’s, this creates kind of a nerdy term called ‘provisional income’. Depending on how much provisional income a person is taking, it causes tax on up to 85% of their social security income….which was already a tax.  And to make it worse, even if you don’t need to take money out of these types of tax deferred accounts…the IRS makes you when you turn 70 ½,” says Jewett. 

Jewett explains that it’s important to realize that we are in one of the lowest income tax eras in history.

“So when the government decides to raise taxes, when you take that money out, you’re going to pay tax at the rate determined at the time by the government,” he says.  

So, according to Jewett, the simple but not so simple answer is, pay taxes now when they’re low and grow your money tax free.  

“One way to do that is to use ROTH option on your IRA or 401k, the other options are to buy Municipal bonds which pay income tax free, or you can use a very powerful form of life insurance,” says Jewett.

To learn more, Jewett suggests building a financial blueprint at