Tax Planning
Two things are certain in life: Death and taxes! While there is not much you can do to avoid the former with prudent planning and foresight, you can do a lot to manage the latter; however, similar to planning what goes into living a happy and fruitful life, a well-planned tax strategy can yield great benefits, but only if it is done professionally and earlier on during your wealth accumulation cycle.
Our Tax Planning philosophy is not centered around tax avoidance but rather on helping you structure your finances, so you and your family are not overburdened by undue tax liability.
Why Tax Planning is Important
Consider this fact: If you managed to shave off $250 from your tax bill each year through prudent tax planning and invested it at a 5% rate of return annually, you could have a tidy sum of over $15,250 waiting for you by the time you retire in 30 years!
Delayed tax planning is tantamount to leaving potentially savable dollars of your hard-earned money on the tax table for which others can benefit. The longer you defer tax planning, the more money you will end up owing and paying in taxes. You could potentially save that money through a reduced tax bill, invested and grown, via the magic of compounding, over many years.
What We Can Do for You
We help our clients through long-term tax planning strategies. Tax planning does not commence on the date of filing your tax returns. Prudent tax planning often starts long before you file, sometimes before you make investment decisions that trigger a tax liability. We can help devise tax planning strategies that minimize taxes, maximize tax refunds, and guide you to optimize your tax-friendly investment returns.
Tax Planning offers the following:
- While the best advice you can get is save as much as you can, the next best advice is to exercise care of your investments, including 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. Our tax investment strategies 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 will 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 before and after retirement, 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 claw-backs to benefits and the possibility of erosion to your estate through substantial taxes.
- We will help you mitigate possible tax impacts when it comes to your estate. A good tax plan not only ensures that future generations do not bear the burden of taxes due to the legacy you leave them but also ensures a tax-advantaged inheritance to your beneficiaries.
