Tax planning is an important piece of a solid retirement plan, as we want to create portfolios that are as tax efficient as possible.
Considering taxes while creating your financial and retirement plan can make a huge difference in the future value of a portfolio and have a major impact for your future.
The key to successful tax planning is knowing the current laws and applying them to the existing financial and estate plan in place. Because regulations can change annually, it’s important to have an experienced partner to help you navigate the choppy waters of the IRS tax code.
There are three common elements to tax planning for the purpose of minimizing your tax burden:
- Reduce adjusted gross income
- Increase the amount of tax deductions
- Appropriate use of tax credits
Protect your Loved Ones and leave a Wealthy Estate
Life insurance has long been a staple in basic estate planning, as it may provide an income tax-free death benefit far in excess of the premiums paid. Federal and state estate taxes may be imposed on all the property that you own at your death, and this tax must be paid from your estate. A life insurance policy that is owned by your heirs, or in an irrevocable trust, will avoid being included in your estate. It can then be used to pay any estate taxes that may be levied at the time of your death.
Life insurance offers one of the best returns on your investment dollar available in the market today. Other useful benefits include:
- 100% tax-free income
- Guaranteed interest growth
- Accelerated death benefits
- Flexible premium plans