Tax Planning

As a part of the financial planning process, one area of your financial picture we will analyze closely is to see if any steps should be taken to enhance the tax diversification of your assets. Every dollar of taxes retained is one more dollar you have at your disposal to save or spend in the future. We will coach you as to how you can create better balance between your taxable, tax-deferred, and tax-free assets in order to more tax efficiently grow and utilize your money moving forward.

Depending on your current tax status, we may recommend that your taxable assets (non-retirement accounts) be invested in tax-sensitive investment strategies that focus on providing you a greater “after-tax” net investment return. These tax-favorable investment strategies focus on utilizing helpful tax saving investment tools such as loss harvesting, tax-lot accounting, wider rebalancing ranges, and gain-loss offset selling of securities. What good does it do you with a taxable asset to get a great rate of return only to have to give half of your return back to the IRS? Tax-managed investment managers are willing to sacrifice a little bit of gross return to provide you with a greater net return on your money.

Finally, being first and foremost financial planners before we are investment advisors, we are always on the lookout for other ways we can help you make sure your personal economy decisions are tax-favorable decisions, for example:

  • Should you consider executing some Roth conversions in the future?
  • Is there a way to make your future Required Minimum Distributions (RMDs) more tax-favorable?
  • Did you know that investment distributions can negatively impact your Medicare Part B premium? Are yours (by the way, if yours are you won’t find out until two years after the fact!)
  • For those who are providing their own health insurance in the years leading up to Medicare eligibility, we might be able to show you how to lower your health insurance premium based on investment planning and distribution decisions.

And these are just a few examples of how specific tax planning make your overall financial plan more efficient.