Tax Planning

We believe it is unwise to create a solid financial plan and then ignore the possible losses and inefficiencies that can often accompany taxes.

There’s an old expression in financial services: it’s what you keep that matters.  Understanding the tax ramifications of financial decisions ranging from selecting the right investments, to managing income taxation year to year, to estate planning for the most advantageous multi-generational tax impact can be the difference between achieving financial goals and not achieving them.

Impact of Taxation

Every investment you own may be taxed in a different way. The taxation of dividends and interest is different than the taxation on capital gains or withdrawals from an IRA. Knowing how these differences may impact your net returns and planning to create the ideal balance between pre- and post-tax returns is crucial.

At Planning WIth A Purpose, we have found that keeping track of the impact of taxes in best accomplished when we work closely together.

For many families, the most important area of tax planning relates to their estate plans. In an environment of changing regulations, ensuring that your estate plan is current and is designed to take advantage of tax savings opportunities is essential.

Avoiding or reducing estate taxes, on both the federal and state levels, is one fundamental goal of estate planning. On another level, though, shifting the burden of paying income taxes, even if your estate will not be subjected to estate taxes, can increase the assets left to heirs. Through a deep understanding of the use of IRAs, charitable gifting and other investments such as life insurance, your Halliday Financial Advisor, in combination with the efforts of our network of accountants and attorneys (or your tax and legal professionals) can help you build an effective strategy that makes sense.