The U.S. tax code is enormous and complex, but that does not mean it cannot be properly accounted for in your financial plan.

In fact, there are many strategies that can be utilized and tax planning should be a proactive concern throughout the year as many opportunities are no longer available when the year is over (which happens to be when many accountants first take a look at your situation).

Our philosophy for tax planning is twofold.

First, to pay what is owed, but not more than necessary. This is done through various strategies (e.g., deductible retirement contributions, tax loss harvesting, and charitable contributions) including simply being aware of our client’s taxable income and if they are approaching higher capital gains taxes or Medicare income tiers.

Second, we aim to keep our clients at a level income tax bracket throughout retirement. Essentially, this is avoiding years when taxable income is in a very low tax bracket as well as years in a very high tax bracket.

A real financial plan will incorporate tax planning into all other areas of planning and we strive to constantly grow our knowledge to give our clients the best service possible. 

This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney and tax advisor for guidance on your specific situation.