Benjamin Franklin aptly said, “In this world, nothing can be said to be certain, except death and taxes.” Both are something many of us fear and prefer to avoid thinking about them. They may never be our favorite topics, but you want to get in front of them, so that you can have a modicum of control, rather than be at their mercy.
It’s been my pleasure to sit with clients for the past 23 years to discuss their finances, hear about their dreams and help them become reality. It’s a real honor to witness their financial evolution. During our conversations, one topic that always pops up is taxes. Many hope that I know the secret to avoiding them.
Over the years I have heard all kinds of crazy (and often illegal) ideas to hide money as everyone is convinced there is something that the “wealthy” do to pay less taxes. The fact is there is very little you can do to “hide” income from taxation. However, there are many opportunities — all legal — to help reduce your tax bill, but they do require some planning on your part.
Tax Strategies that May Reduce Your Tax Liability
Over the next couple of weeks, I’m going to focus on the follow topics:
- Reducing Taxable Income
- Business Qualified Plans
- Asset Location: Asset Allocation
- Gifting Strategies: Charitable Giving
- Employee Benefits that Reduce Current Taxation
- Municipal Bonds and Tax Free Income
- Required Minimum Distributions
- Estate Planning Considerations
- Harvesting of Tax Losses/Gains
You may discover that you done a great job in all these areas, but I suspect many of you will uncover some missed opportunities. It’s my hope that I can help you identify areas that will benefit your overall financial plan and well-being now or in the future.
PLEASE NOTE: These strategies will not all be relevant to your personal situation and should be discussed with your CPA and financial advisor prior to implementation.
What I will not be doing is telling you how to prepare or file your taxes. I am not a CPA and for most of you reading this, I am not your financial advisor and do not know your personal situation. The information I will be sharing is intended to give you a place to start a conversation with your CPA and financial advisor.
Got Tax Questions?
It can be very difficult to stay up-to-date on the ever-changing tax code. If you have a question on the topics I will be discussing, please send it to me via the comment form below, and where appropriate, I’ll address them within the series.
Please Note: I may not be able to answer every question received and cannot give specific advice on your individual situation, but only offer general guidance. I will do my best to give you plenty of food for thought for your discussions with your CPA and financial advisor.
Tax season is in full swing, and many of us dread this time of year. It doesn’t have to be that way. I’m looking forward to helping you take a fresh look at taxes and your money.
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