Tax Planning

It’s said that only two things are certain in life: Death…and Taxes! And while there’s not much you can do to avoid the former, with prudent planning and foresight, there’s a lot you can do to minimize the later. However, similar to planning that goes into living a happy and fruitful life, a well-planned tax strategy can yield great benefits – but only if it’s done professionally, in conjunction with your tax professional, and earlier on during your wealth accumulation cycle.  

Our Tax Planning philosophy is not centered around tax avoidance, but rather on helping you structure your finances so you and your family aren’t 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!*

*This is a hypothetical example and is not representative of any specific investment. Your results may vary.

Delayed tax planning is tantamount to leaving potentially savable dollars, of your hard-earned money, on the tax table for others to benefit from. The longer you defer tax planning, the more money you’ll 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’s exactly how we’ll 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, along with your tax professional, can help devise tax planning strategies that potentially reduce taxes, increase tax refunds and guide you to increase your tax-friendly investment returns.

Here’s what we can do for you through our Tax Planning service: 

  • 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 investment 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. This can make a significant difference to the taxes you pay. Our advisors can help you navigate through the various advantages and disadvantages of choosing one strategy over another

  • When planning for tax impact on your income, we’ll 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 implications  

  • Our experienced professionals can 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

  • Along with your legal advisor, we’ll help you mitigate 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.

Align Wealth Group and LPL Financial do not provide legal advice or tax services.  Please consult your legal advisor or tax advisor regarding your specific situation.

Investing involves risk, including possible loss of principal.