Tax Planning

About Tax Planning & Strategies

One of the cornerstones of financial planning is proper tax planning.

Effective tax planning can help you save money and fine-tune your investment strategy. When formulating a financial plan for our clients we consider the tax ramifications of each product we recommend and minimize the taxes they have to pay, not only during their accumulation years but also during their distribution years. There is an old saying that holds to this day, “it’s not what you make, it’s what you keep.”

Tax planning takes on many different aspects from the selection of tax-efficient investments and types of retirement plans as well as filing status and common deductions.

It’s important to understand that, historically, income taxes today are the lowest they have ever been. With the national debt at all-time highs, trillions more being spent on a struggling economy from COVID, Obamacare, social security on the brink of collapse there is a good argument that taxes are only going higher over the next decade or two. Meaningfully higher.

Consider the fact as well that tax brackets do not necessarily have to increase for you to pay more tax, deductions going away has a similar effect. Additionally, going back to 1913 the average top marginal income tax rate has been 59%. Matter of fact, the highest top bracket has been over 90%!

Careful planning throughout the year can assist you in reducing the taxes you pay – as well as help you achieve your financial goals.

Contact us today and find out for yourself the difference when working with ANNUVA Financial. Utilizing effective tax planning within your financial plan can mean the difference between an average financial plan and a great financial plan.

Keep in mind that tax laws are often complex and frequently change. As a consequence, you should consult your tax advisor before making investment and tax decisions.