Taxes are a part of our everyday life and an essential piece of a solid retirement plan, as we want to create portfolios that are as tax efficient as possible. Considering taxes while building your financial and retirement plan can make a massive difference in the future value of a portfolio and have a significant impact on 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 crucial 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 to minimize your tax burden:
- Reduce adjusted gross income
- Increase the number 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 essential estate planning, as it may provide an income tax-free death benefit far above the premiums paid. Federal and state governments may impose estate taxes on all the property that you own at your death, and this tax payment must come 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 pay any estate taxes owed 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