The Importance of Strategic Tax Planning
Most of us don’t like to think about taxes too much. We file our taxes once a year, perhaps rushing to get the job done and dusted. But this approach isn’t necessarily to your benefit. Effective tax planning is more than just filling out forms at tax time; it involves a year-round approach to minimizing your tax liability while staying compliant with tax laws. In this blog post, we’ll communicate how proactive tax planning can help you keep more of your hard-earned money.
The Goal is to Minimize Taxes
A famous Saturday Night Live skit once promised to teach us how to make a million dollars and not pay any taxes. The punchline was, “First, get a million dollars.” And what do you say to the taxman when he comes to your door? “I forgot!”
Avoiding taxes, obviously, is illegal. Minimizing taxes is perfectly legal. The more you can minimize your taxes, the more income and assets you will have for your personal use. Managing your tax liability is something that a professional tax planner can help you with. He or she will identify the programs that will help you minimize taxes, and then implement a strategy.
In general, it’s unwise to rely on your regular accountant to help you minimize taxes. Accountants tend to be hyper-busy during tax season – which is often the only time you’ll speak to them – and taking an in-depth look at your tax minimization options is probably not going to fit into the accountant’s calendar.
At Prime Wealth Advisors, we will work with you initially to get your entire financial lives organized and identify all assets and liabilities. We can help you come up with a social security filing strategy that makes the most sense. Our multidisciplinary team will sit down and brainstorm about how to reduce your tax liability while achieving your overarching financial goals.
The Ways We Can Help You Minimize Your Taxes
For retirees or soon-to-be retirees, the best strategy for reducing tax liability includes estate planning and insurance. These vehicles will allow you to convert some of your currently taxable assets into ones that will be tax-free in the future. We can also help you put part of your assets into structured products that will help give you a base income that is fixed and invariable. In addition, we can help you build a budget to make sure your spending stays within a range that won’t negatively affect your future goals. Once this is accomplished, we will meet with you periodically to prepare your taxes and look for additional tax planning opportunities. One of the other major benefits is that you’ll have everything you need under one roof, which keeps things easy going forward.
Choose a Tax Strategy Professional
Prime Wealth Advisors is passionate about helping you protect your wealth and structure a secure income stream in retirement. Our experienced team of financial planners, investment managers, tax accountants and attorneys work together to help you minimize worries and maximize results.
Arizona-based Prime Wealth Advisors is a full-service investment, tax, retirement planning, estate and wealth management firm that can craft a robust investment plan for you, your business and your heirs. Call 623.77.PRIME or visit our website for more information.