Anyone who pays taxes should consider tax planning. Without it, you may pay more in taxes than you should. Alloy Wealth helps clients manage the impact of taxes on their financial efforts with tax strategies and tax bill management. When you meet with us, our goal will be to help you become tax-efficient so you will have more money to save and invest towards retirement. Being tax-efficient does not mean you’re not paying your fair share; it just means you’re making smart investment decisions and timing your income, purchases, and sales of assets to reduce your tax liability.
If you made a lot of money this year and are expecting a big bonus, we would recommend you delay depositing that check to avoid ending up in a higher tax bracket. After a great financial year, selling property or stocks should also be delayed to avoid paying capital gains at a time when you’re already facing higher taxes. Instead, sell those assets in the New Year so you will have the time you need to take reinvest your profits in another property, or sell of stock at a loss to offset capital gains. Tax planning is all about strategy.
We pay taxes throughout our lives, so it makes sense to think that when we retire, we won’t have to. Unfortunately, all retirees pay taxes and many even pay on their Social Security benefits. That’s why tax planning is imperative for retirees and pre-retirees alike. At Alloy Wealth, we will strive to keep you in the lowest tax bracket possible every year. To do that, we will look at what qualifies as your “earned income,” and then will teach you to take money out of your nest egg in a tax-advantaged manner. We’ll help you understand the benefits of a sound insurance strategy and how tax-efficient investing can help you achieve your goals. If you have questions or would like to make an appointment, call 800-689-3935 to speak with one of our team members.