Tax Research
Tax preparation looks backward. Tax planning looks forward.
Preparing a tax return is an important part of financial life. It records what happened during the previous year and determines the resulting tax obligation.
Tax planning asks a different question:
What decisions can we make today that may affect the taxes we pay tomorrow?
Investment decisions, retirement contributions, Roth conversions, business income, charitable giving, Social Security, required distributions, estate planning, and the timing of income can all have tax consequences.
The objective is not simply to minimize taxes in a single year. Good planning considers how today's decisions may affect your financial plan over many years.
Tax Decisions Rarely Stand Alone
A financial decision made for one reason can create tax consequences somewhere else.
A Roth conversion may affect taxable income today. Investment decisions can create capital gains or losses. Retirement distributions can affect taxable income and potentially Medicare premiums. Business decisions can affect both current income and long term wealth. Charitable and estate planning decisions may affect both taxes and legacy objectives.
That is why tax aware planning looks beyond a single transaction or a single tax year.
The question is not simply, “How can I pay less tax?”
The better question may be, “How can my tax decisions support the rest of my financial plan?”
Today
Managing income, deductions, investments and current tax exposure.
Retirement
Roth conversions, required distributions, Social Security, withdrawal sequencing and Medicare considerations.
Legacy
Estate planning, trusts, charitable strategies and transferring wealth efficiently.
Tax Diversification
Research on holding assets with different tax treatments and how that can create greater flexibility when deciding where retirement income should come from.
Tax Diversification
Holding assets across taxable, tax deferred, and Roth accounts can provide flexibility in deciding where retirement income comes from. The tax treatment of each account differs, making the mix of accounts an important part of long term retirement and withdrawal planning.
Roth Conversion & Withdrawal Strategy
The order and timing of retirement withdrawals can affect taxes over many years. Research and retirement planning analysis show that Roth conversions and withdrawal sequencing should be evaluated together rather than simply following the same withdrawal order every year.
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Tax Aware Investing
Where investments are held can matter as well as what investments are owned. Vanguard research found that asset location can add up to approximately 0.30% annually in after tax returns for certain diversified investors with appropriate taxable and tax advantaged account balances.