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Tax Mitigation Planning

Tax planning is an important component for your overall financial plan.  It should not be done in isolation, but instead should be driven by your overall financial goals and integrated with your total financial plan.  All too often tax planning is confused with tax preparation, which involves looking to the past.  What happened and how much will it cost.  At Life Certain Wealth Strategies we view tax planning as a forward looking process. What can we do today to mitigate tax issues in the future?  What strategies should be implemented? What tools are available?

Having a tax-efficient retirement income strategy could be the single most important thing you can do to maximize your income in retirement.  It can potentially mean the difference of tens of thousands, if not hundreds of thousands of dollars in tax savings.

As you plan for your retirement you may find that your attorney, accountant, financial advisor, insurance agent and other professionals are not all on the same page.  Different advisors typically do not take the initiative to coordinate their efforts, and often do not have all the information they need to effectively develop an integrated tax-efficient retirement plan for you.

At Life Certain Wealth Strategies, we believe that a more unified effort from your team of advisors can produce a more cohesive and tax-efficient holistic retirement plan.   Often your Life Certain Wealth Strategies advisor will be the facilitator of your advisor team. He or she will help implement your retirement plan, assist you in developing a strong team of advisors and monitor your plan.  A good facilitator will help provide the proper direction and guidance to successfully develop, monitor, implement and coordinate a unified tax-efficient retirement plan.

Our approach to tax planning is both coordinated and forward looking. We will proactively look ahead to the tax impact of potential decisions so that you can effectively minimize your tax liabilities. In addition, we seamlessly coordinate with your accountant and other professionals to reconcile your tax planning strategies with your investment and wealth planning goals.

There are many kinds of taxes and with the constantly changing tax code, it is important that we incorporate tax planning to maximize our clients' wealth. To do this we familiarize ourselves with our clients' tax situation and manage portfolios with forward looking tax planning.

Here are some of the steps we may suggest:

  • Harvesting tax losses
  • Monitoring our clients' marginal tax rates, capital loss carry-forwards, and Alternative Minimum Tax situations
  • Selecting investments with the best after-tax returns
  • Staying aware of significant investment-related changes in the tax code, including changes in the capital gains tax rate, dividend tax rate, tax brackets, IRA contribution limits, etc.
  • Planning Charitable Giving to maximize tax benefits

The biggest mistake many people make is to wait until April to concern themselves with their taxes.  Forward looking tax planning mandates precise actions with meticulous consideration among a wide spectrum of financial knowledge (tax, financial planning, investments, and so on). At Life Certain Wealth Strategies we recognize that your decisions today will greatly impact your wealth tomorrow.  Contact us today for a complimentary consultation.