Tax Planning
While we are not a CPA firm, we understand the importance of annual tax planning and its impact on our clients. Additionally, tax-efficient management of your portfolio can significantly extend its longevity. Whether it’s developing a Roth conversion strategy, creating a tax-efficient plan for charitable giving, or advising on retirement plan contributions, we are here to serve you.
Income Planning
Managing your income each year directly impacts how much tax you will pay for the current year and in the future.
For retirees, transitioning from high-earning years to lower taxable income can create opportunities for tax planning. This shift opens the door to strategies for managing withdrawals from pre-tax savings. For example, you might create a tax-efficient withdrawal strategy across different types of accounts or strategically use Roth conversions to reduce pre-tax assets while in a low tax bracket.
While you are still working, your tax planning revolves around decisions such as whether to save on a pre-tax basis to receive a current-year deduction, or to contribute to Roth or after-tax savings and forgo the immediate tax break.
Whether retired or still working, it’s always important to review available deductions and credits that could reduce your tax liability in any given year, and to consult with your CPA to ensure you’re making the most of these opportunities.
Tax Efficiency
Tax planning also extends to the management of your portfolio. For those with after-tax savings, we are mindful of interest and dividend income, as well as realized capital gains throughout the year. Our goal is to mitigate short-term capital gains and identify opportunities for tax-loss harvesting where appropriate.
The longevity of your portfolio can be extended by strategically allocating your fast-growing assets, such as stocks, to your Roth and after-tax accounts where tax rates are preferential. Slower-growing assets, such as bonds, can be invested in your pre-tax accounts where income is deferred, and growth is taxed as income.
Additionally, we can assist with preparing a tax estimate before year-end to review with your CPA. This proactive approach helps you stay informed, be prepared, and make any necessary year-end decisions that could impact your taxes.
Connect With Us
Our goal is to address your sophisticated financial needs through prudent, personalized investment management and financial planning services. We provide advice and solutions that are specifically tailored to your unique circumstances and goals.