Tax Efficiency

Taxes are an unavoidable part of life, but there are ways to manage how much and when we pay taxes. We collaborate with our clients’ trusted tax professionals to ensure they are not paying more in taxes than required. When it comes to income taxes, capital gains taxes, or estate taxes, we help our clients utilize timely strategies to manage their tax situation now and into the future.

Our tax planning philosophy is not centered around tax avoidance, but rather on helping you structure your finances so you and your family are not overburdened by an undue tax liability.

Why Tax Planning is Important

Consider this fact: If you managed to shave-off just $250 from your tax bill each year, through prudent tax planning, and invested it at a 5% rate of return annually, you could have a tidy sum of over $15,250 waiting for you by the time you retire in 30 years!

Delayed tax planning is tantamount to leaving potentially savable dollars of your hard-earned money on the tax table from which others could benefit. The longer you defer tax planning, the more money you will end up owing and paying in taxes. That money could potentially have been saved, through a reduced tax bill, invested and grown, through the magic of compounding, over many years.

What We Can Do For You

We help our clients through long-term tax planning strategies – and that is exactly how we will help you. Tax planning does not commence on the date of filing your tax returns. Prudent tax planning often starts long before – sometimes even before you make investment decisions that trigger a tax liability. We can help devise tax planning strategies that seek to minimize taxes, maximize tax refunds, and guide you to optimize your tax-friendly investment returns.

Here is what we can do for you through our tax planning service: 

  • Tax Planning advice: While the best advice you can get is: Save. Save. Save…as much as you can, the next best advice is: Be careful how you invest those savings. Our tax planning advice will include considerations on whether you should invest with pre-tax dollars or post-tax income. How you invest and in what types of vehicles can make a significant difference to the taxes you pay. Our team can help you navigate through the various advantages and disadvantages of choosing one strategy over another.

  • Planning for greatest impact: When planning for tax impact on your income, we will also plan for the types of income that you might receive: dividends, interest, annuity payments, capital gains, inheritances, employer or government benefits. While all of these are potential income streams in retirement and before, each has different tax planning implications.

  • Preparing for the unforseen: Our professional will help you foresee impacts to your future net wealth. If left unplanned, your net wealth could be diminished due to likely claw-backs to benefits, and the possibility of erosion to your estate through substantial taxes.

  • Creating a tax plan: We will help you manage possible tax impacts when it comes to your estate. A good tax plan will ensure that future generations do not bear the burden of taxes as a result of the legacy you leave them. But to ensure a tax-advantage inheritance to your beneficiaries, you need to put appropriate plans in place now – and that is where our team can help.

For more information about tax efficiency, please contact us today.

Examples presented are hypothetical and are not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. LPL Financial and Vivant Financial Services do not offer tax services.