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Tax Planning

Tax planning is analyzing your current financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning is an essential part of your financial plan.

Taxes will take between 25% - 40% of your income, so it is critical to manage your assets in a way that is tax efficient. A reduction in tax liability by just 10% can save you hundreds of thousands of dollars over a lifetime.

A tax plan will answer questions such as:

  • Should I invest in a ROTH IRA?
  • What is tax loss harvesting, and should I do this?
  • How much should I put in tax deferred vs tax free retirement savings?
  • Will my Social Security be taxable?
  • What are tax free bonds, and should I invest in them?