TAX PLANNING - KEEP MORE OF WHAT YOU EARN
Whether you are saving to fund a child’s education, pay for your healthcare, fund your own retirement, or fund a legacy for your heirs-- there are opportunities to minimize current and future wealth erosion to income and estate taxes. While CPAs are your first line of defense in tax planning, we often find they don’t have a complete picture of your finances or may lack the time for individual, in-depth tax planning.
Understanding the ever-changing income tax code is part of our job as your financial advisor. We understand how our clients’ investments are structured tax-wise, how they may use the various tax advantaged options available for reaching specific goals, and how to develop a customized comprehensive tax and investment strategy that combines investment growth with tax minimization.
Understanding the ever-changing income tax code is part of our job as your financial advisor. We understand how our clients’ investments are structured tax-wise, how they may use the various tax advantaged options available for reaching specific goals, and how to develop a customized comprehensive tax and investment strategy that combines investment growth with tax minimization.
TAX-EFFICIENT SAVINGS STRATEGIES
When you're saving for retirement, there are a plethora of account options to choose from: Taxable, Tax-Deductible, Tax-Free, 401(k)s, 403(b)s, 457(b)s, stock equity programs, SIMPLE IRAs, Cash Balance Plans, Mega Backdoor Roth After-Tax Accounts, among many more.
When we create your financial plan, we coordinate which accounts to use with a personalized tax plan that encompasses your entire life rather than the current year. During the plan building process, we determine your retirement cashflow needs and coordinate which accounts would be most beneficial to use along the way to provide retirement income in the most tax-efficient way possible. This is especially important to high earners who plan to retire earlier than the standard age of 65 when Medicare starts.
When we create your financial plan, we coordinate which accounts to use with a personalized tax plan that encompasses your entire life rather than the current year. During the plan building process, we determine your retirement cashflow needs and coordinate which accounts would be most beneficial to use along the way to provide retirement income in the most tax-efficient way possible. This is especially important to high earners who plan to retire earlier than the standard age of 65 when Medicare starts.
DYNAMIC RETIREMENT WITHDRAWAL STRATEGIES
When you retire, we work with you to develop a dynamic withdrawal strategy that minimizes taxes over your entire lifetime, not just the current year. We help determine which accounts to draw income from first and how to use those income tax savings to manage and reduce future income tax liability. We'll also help find better ways to use the assets you already have to meet other financial goals and coordinate with your CPA to manage your income tax liability while ensuring we’re all on the same page.
Taxes are a drain on your investments and the long-term growth of your wealth. An income tax rate of 20% or more over your working lifetime could reduce the total wealth you’re able to accumulate by tens-, or even hundreds-of-thousands-of-dollars. Implementing a cohesive tax and investment strategy will keep dollars in your pocket and portfolio by bringing these previously unrelated aspects of your financial life into sync.
Taxes are a drain on your investments and the long-term growth of your wealth. An income tax rate of 20% or more over your working lifetime could reduce the total wealth you’re able to accumulate by tens-, or even hundreds-of-thousands-of-dollars. Implementing a cohesive tax and investment strategy will keep dollars in your pocket and portfolio by bringing these previously unrelated aspects of your financial life into sync.
ASSET LOCATION
When you’re accumulating wealth, it’s also important to match your investments with the correct account type to ensure optimum tax-efficiency and provide the highest after-tax returns possible. Traditional IRAs, Roth IRAs, Beneficiary IRAs, individual brokerage accounts, joint accounts, HSAs, 401(k)s, 403(b)s, etc. all have their own tax characteristics and rules. We help you understand and navigate these rules.
Certain investments should be held in tax-deferred Traditional IRAs or 401(k)s, while others are more suitable for tax-free growth inside a Roth IRA or Roth 401(k) account. If you need to keep taxable income down, municipal bonds and tax-efficient Exchange Traded Funds (ETFs) may be appropriate in a taxable individual or joint account. If expecting sustained growth over a long time-horizon, a Roth IRA may be more appropriate.
When we build a financial plan, we match your investment strategy to the type of account that provides the most tax-efficient returns.
Certain investments should be held in tax-deferred Traditional IRAs or 401(k)s, while others are more suitable for tax-free growth inside a Roth IRA or Roth 401(k) account. If you need to keep taxable income down, municipal bonds and tax-efficient Exchange Traded Funds (ETFs) may be appropriate in a taxable individual or joint account. If expecting sustained growth over a long time-horizon, a Roth IRA may be more appropriate.
When we build a financial plan, we match your investment strategy to the type of account that provides the most tax-efficient returns.
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