Taxes are the most important drag on investment return, even greater than inflation, transaction costs or management fees. Studies performed ten to fifteen years ago showed that taxes reduced returns by an average of one to three percentage points.
Recent tax increases should increase these percentages significantly, making it more important than ever to manage tax drag. Adding strategies reduces the effective tax rate on investment returns.
The strength is understanding and utilizing tax shelters built into the Internal Revenue Code. It involves developing various specific tax strategies in the following areas:
- Traditional IRA and Roth IRA Planning
- Qualified Retirement Plan Distributions
- Capital Gains and Losses
- Bond Income
- Dividend Income
- Stock Option Transactions
- Charitable Planning
- Specialized Investment Transactions
- Tactical Tax Planning
- Trusts and Estates
- 1031 Real Estate Transfers
Tax consequences are an essential factor in the recommendations we make concerning your financial plan. We’ll work with your CPA or tax professional to minimize tax impact and best serve your interests.