Tax Planning

Allowing for taxes is a critical part of responsible financial planning. We consider it our job to help you mitigate your present and future tax obligations to the greatest possible extent. Because tax laws change, building flexibility into your plan is key. Most investments fit into one of three categories. We recommend having some money in each of the three—we use a comprehensive software program to help us analyze the advantages of each.

Taxable

Regular non-qualified accounts outside of your retirement plans such as mutual funds, stocks, bonds or savings accounts that send you a 1099Div form each year are what we mean by Taxable - you pay taxes on the dividend or interest income generated from these investments each tax year.

Tax Deferred/Tax Deductible

Your IRAs, 401ks, 403bs, annuities or other investment vehicles that are tax favored at the time of investment - i.e. you do not receive a 1099Div each year unless you've taken money out, and/or you receive a tax deduction for contributing to these accounts - are what we mean by Tax Deferred/Tax Deductible type investments.

Tax Free

Roth IRAs, college savings 529 plans (if used for higher education expenses), certain types of cash value life insurance, or municipal bonds (which may be federally tax free but may incur state or local taxes) are examples of Tax Free investment vehicles.