Tax Planning

Tax Planning Services

Retirement doesn’t mean you automatically will pay less in taxes. In some cases, you will pay more! It is important to plan for your future tax situation and make adjustments now.

How this happens:

  • We evaluate all future income streams.
  • Evaluate what accounts types you own. Taxable, IRA, Roth IRA, 401k, etc. Each one of these accounts have unique tax rules and we need to evaluate each one.
  • Evaluate taxable accounts and investments within the accounts. This is making sure you have the proper asset location!
  • Charitable giving opportunities, if this is a goal of yours.


Some areas that we like to evaluate.

Capital Gains

Capital gains can occur a couple of ways. First, because of me selling assets in a taxable account that are worth more than what they were purchased for. Second, by the fund managers of actively managed investments have a lot of turnover in the investment and pass those gains on to clients through “year-end distributions.”

The second way is usually unexpected and comes out of nowhere. I mean, we aren’t completely upset because the fund managers are giving us money. However, those distributions can add to your tax bill. In addition, this doesn’t always mean more return. It just means you have to pay more in taxes. 

We want to lower that tax bill by trying to use tax-efficient investments. 


Tax-Loss Harvesting

Not all investments make money. I know, I know, that is not what an advisor should say. However, there is a silver lining.

When you sell investments at a loss, you can offset gains of other sales in taxable accounts. This is all part of the rebalancing process that helps investment strategies perform. 

We can use tax-loss harvesting to:

1. Dilute Concentrated Equity Positions

2. Rebalace

3. Sell High-Cost Active Products. 

The harvesting can be done regularly or annually, it just depends on the client and the situation. 




Gifting and Charitable Contributions

Some people find giving to others is very important. If it is, we admire your thoughtfulness and want to be there to help. The good news, is the IRS takes notice of this and provides tax benefits for those who give to others and organizations. 

We can help evaluate how much to give while still achieving your financial goals. 

Charitable giving can be done with cash or by giving property. That includes “capital gain” property. You can give large chunks of appreciated assets to organizations and reduce your tax bill.



Asset Location

We use asset location to maximize after-tax return. This is the value of using financial planners. It is not just about the investment, it is the tax effects of how we use the funds. According to Vanguard, asset location can add up to .75% to the value of a portfolio annually. 

How? By giving less to Uncle Sam. 

Tax-Advantaged Accounts: Use tax-inefficient investments, taxable bonds, REITs, short term stock holdings.

Taxable Accounts: Use tax-efficient stock funds, municipal bonds, long term stocks, index funds and ETFs. 


Retirement Accounts

We evaluate all savings vehicles including IRAs, Roth IRAs, 401ks, Roth 401k, and all other employer benefits. There are other ways to develop tax benefits.

Whether it is taking advantage of current tax benefits or taking advantage of future tax benefits, we will evaluate all savings opportunities. 

I like to view myself as a mechanic. There are so many car types out there. It is my job to make sure that all of the cars you own are running properly. 



Employer Stock Options

For those of you who are fortunate enough to receive compensation benefits from your employer, we can help. 

The benefits can come in many different varieties, incentive stock options, non-qualified stock options, restricted stock, restricted stock units, just to name a few. 

Each type has its own unique tax ramifications and we can help make decisions on what to do next and what is best for your goals. 

**Disclaimer: All tax decisions should be finalized by a CPA. None of the information presented here is tax advice. You should always consult with a tax advisor to confirm that the tax decisions are good for your situation.** 

Ready to talk more about Tax Planning?

 Let’s start a conversation. Send us your contact information and we’ll be in touch to go over your finance goals.

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