Roth IRAs are “the way to convert retirement funds now into tax-free income by including them in your current tax picture,” Foss said. She also recommends that wealthy investors try to use up their lifetime exemptions from the estate/gift tax because the new administration is likely to reduce those exemptions.
Investing in a private placement life insurance contract, said Audent’s Michael Winn, could be “a creative way to self-direct personal investments with after-tax dollars in a vehicle that avoids all taxes now and in the future.”
One major misconception is that a Biden win means taxes will immediately increase. Hoffman said highlighting this misconception to clients can help them avoid panicky decisions.