None of us wants to pay more in taxes than we must. At Alloy Wealth Management, we offer tax planning services designed to help clients enjoy a better retirement. Taxes can take a big chunk out of your income and impact the amount of money you can save towards retirement each month. The goal of tax planning is to help you minimize taxes and maximize retirement savings and make money last longer in retirement. 

When a client contacts us for tax planning help, we must first look at what qualifies as their “earned income”. Our priority is to keep them in the lowest tax bracket possible. A crucial step in tax planning is to consider when savings will be taxed as some taxes can be deferred and others can be managed through tax-efficient investing. Tax deferred investments result in paying taxes later. Tax-efficient investments are taxed up front. 

While contributing to retirement accounts can help an individual stay in a lower tax bracket, so can avoiding selling too many assets in one year. If you invest in stocks, for example, resist selling too many shares in one year, especially if the sale of the shares pushes you into a higher tax bracket. Sell a little in one year, and more in the next. 

Tax planning is all about strategy and Alloy Wealth Management educates clients on tax strategy and tax bill management, the importance of diversification of investments, and the tax implications of required minimum distributions when it’s time for them to start taking money out of their retirement accounts. If you have questions or would like to schedule an appointment with one of our tax planning experts, call 800-689-3935.