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Tax Planning And Preparation

Rising taxes are a concern for both pre-retirees and retirees. Therefore, it is critical to incorporate tax planning into your financial decisions. We believe that taxes may pose the biggest threat to your future financial stability because they can cause asset erosion if not handled efficiently.

Tax-Deferred Strategies

Investing in a tax-deferred vehicle means your money can compound interest for years while deferring income taxes until you withdraw the funds, conceivably at a lower tax rate. By doing this, you have the potential to earn interest faster because more of your money stays invested and compounds more interest. While very few financial vehicles avoid taxes altogether, insurance products allow you to defer taxes until retirement—when you may be in a lower tax bracket. 

Advanced Tax Strategies

If you have been extraordinarily successful in life, you may retire in either the same or a higher bracket than you are in today. If this is your case, then tax deferral in a rising tax environment may not make sense. You may require employing additional strategies that better fit your situation.

Advanced tax strategies designed to follow current tax codes can significantly benefit you when applied correctly by a professional team that knows you and your family’s goals. Advanced planning is part of our firm’s culture. It is part of what we do for our clients in an effort to keep them ahead of the game.

Please note that withdrawals from insurance or annuity products will reduce the contract value and the value of any protection benefits. Additional withdrawals taken within the contract withdrawal charge schedule will be subject to a withdrawal charge. All withdrawals are subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax.