Our Tax Planning Approach
Tax planning has always been an integral part of our wealth management services. We customize investment decisions to your personal tax situation and use multiple strategies to enhance after-tax returns.
While we don’t prepare taxes or do accountancy, we dive deep into tax reduction strategies. We look at our clients’ tax returns every year and prepare high-level tax projections when analysis is needed. This gives us an overall sense of their tax situation. We work hand-in-hand with a client’s CPA to find tax opportunities.
Tax location planning
A major tax planning opportunity is tax location planning. This means matching an investment account’s tax characteristics to an investment’s tax characteristics.
For example, you don’t want to put a tax-free municipal bond into a regular IRA. Doing so would take tax-free money and make it taxable. We put most growth assets in Roth IRAs, while putting investments that don’t get a tax break into tax-deferred accounts. We allocate investments that do get a tax break to taxable accounts.