Don’t Overdo It on Income Investments
Keep an eye on the profit generated by your investments outside of your retirement accounts. You could significantly increase your adjusted gross income (AGI) to the point a serious chunk of your Social security benefits becomes taxable by simply having dividend and interest income or capital gains distributions.
Don’t think nontaxable interest, such as the interest on municipal bonds, is excluded from the Social Security tax calculation. If your income is on the verge of exceeding the threshold at which more of your Social Security benefits become taxable and you don’t rely on that income for your day to day life, it would be a better idea to move some of the money into growth-oriented investments that don’t produce as much taxable income.
