Tax Planning

Would you rather pay taxes on the seed or the harvest?  There is actually no one correct answer to that question, this is where tax planning comes in.   Similar to planning that goes into living a happy and fruitful life, a well-planned tax strategy can yield great benefits.   

Consider this:

  • Pay too much in taxes while you are working, and it can hurt your retirement savings.  
  • Did you know that Social Security income starts off federally tax free? However, the provisional income rule can quickly make up to 85% of your Social Security taxable as ordinary income, causing what many call a Social Security Tax Torpedo. 
  • Required Minimum Distributions (RMD’s) is the IRS rule that says you have deferred taxes too long and now must start taking taxable distributions, needed or not. If those accounts are too large, the forced income could cause significant tax consequences affecting more than just the RMD itself. 
  • When a spouse dies the tax laws are not in favor of the surviving spouse living at the same lifestyle level as when both spouses are living. 
  • When finally leaving this world, you leave a tax burden to your estate and heirs.  

It is up to you to decide if you want to pay more than you must or keep more of your money for you and your family.

Our Tax Planning philosophy is not centered around tax avoidance, but rather on helping you structure your finances efficiently to minimize the tax burden throughout your lifetime

Why Tax Planning is important

Tax laws change regularly, and you cannot control how they change, however, with proper planning you can gain control of how those laws affect your situation, minimizing the effect. 

What we can do for you

We help our clients through long-term Tax Planning strategies – and that’s exactly how we’ll help you. Tax planning does not commence on the date of filing your tax returns. Prudent tax planning happens annually.   If you are going to make a decision that may involve tax consequences, we will be here for you to help with that decision. 

Here’s what we can do for you through our Tax Planning services: 

  • While the best advice you can get is: Save. Save. Save…as much as you can. The next best advice is: Be careful how you invest those savings. Our Tax Planning advice will include considerations on whether you should invest with pre-tax dollars, or post-tax income. How you invest, and in what types of vehicles, can make a significant difference to the taxes you pay. We can help you navigate through the various advantages and disadvantages of choosing one strategy over another
  • When planning for tax impact on your income, we’ll also plan for the types of income that you might receive: Dividends, Interest, Annuity payments, Capital Gains, Inheritances, Employer or Government benefits. While all of these are potential income streams in retirement and before, each has different tax planning implications  
  • We will help you foresee impacts to your future net wealth. If left unplanned, your net wealth could be diminished due to likely claw-backs to benefits, and the possibility of erosion to your estate through substantial taxes
  • We’ll help you mitigate possible tax impacts when it comes to your estate. A good tax plan will ensure that future generations do not bear the burden of taxes as a result of the legacy you leave them. But to ensure a tax-advantage inheritance to your beneficiaries, you need to put appropriate plans in place NOW – and that’s where our Tax Planning specialists can help

Value-added services: We’ll not only help you choose the right retirement savings accounts for you, but we’ll ensure they are the most cost-effective and tax-advantaged for your specific situation.  If you switch jobs, we’ll also advise you on whether it makes sense to Rollover, Stay, Move or Cash out from an employer-sponsored retirement savings plan

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