Multi-Year Tax Strategies that Work
Protecting your financial future starts with strategic tax planning today—both for your present, and especially your future.
In an effort to minimize your tax burden, we may run multi-year tax projections to guide you toward the right strategies for retirement contributions and withdrawals, tax loss harvesting of your investments, charitable giving, and more. Our tax planning process includes:
- Coordinating with your accountant and/or tax advisor regarding the projection of your current and future estimated tax liability, withholdings, estimated quarterly payments.
- Implementing long-term tax strategies to optimize after-tax portfolio returns and cash flows.
- Considering options like conversions to reduce income tax liability in the near term as well as implement longer-term tax minimizing trusts for strategic wealth transfer.
Lifetime Tax Liability
A strategic plan accounts for tax liabilities at every stage – when money is saved, as it grows in the market, and when it is ultimately withdrawn.
Our team will guide your hard-earned dollars toward the most tax-advantaged accounts as well as make sure you're not minimizing next year at the expense of your future self, allowing you to take the long view and make informed decisions.
Annual Tax Projections
Depending on the complexities of your financial situation, we may find it beneficial to revisit a tax projection as often as annually.
A tax projection will provide a glimpse at future tax liabilities so we can make informed decisions and avoid unexpected tax bills with a multi-year tax strategy designed to minimize your lifetime tax liability.
If your current advisor isn't able or willing to review your current and future tax needs, you might be settling for basic advice.
Tax-Efficient Investing
Investing means asset growth; growth that comes with it's own unique tax liabilities. Here's a secret: you can't change tax law, but you can get ahead of things and make choices about when and how to recognize income if you have the right partner.
Beyond strategic asset location and savings conversions, we'll work through deeper opportunities like tax-loss harvesting so you can be confident you aren't missing out on value drivers our team works with every day.
Taxable Estates
Although the exemption for taxable estates has been a moving target, it's important to work with an advisor who will help you plan ahead to make sure as much of your hard-earned assets remain with your loved ones.
With several former attorneys and CPAs directly on-staff, we never shy away from recommending and implementing complex trust strategies. We'll stay on top of evolving state and federal changes so you can rest assured your legacy is protected.
Tax-Focused Team
If you're only focused on the next tax return, you're likely missing out on the multi-year strategies that make the biggest impact.
Your run of the mill investment manager or those at broker dealers often miss long-term tax planning in their pursuit of shorter-term results. The benefit of Plancorp having so many CPAs and former accountants on staff is the detailed focus on leading many planning discussions with an eye on how we can make sure you aren't leaving an unnecessary "tip" on your tax bill.
Tax Planning
Lawyer Saves Millions With Strategic Partnership
A client, who was the sole owner of his law firm, had an 8-figure settlement coming in. Due to his sole ownership, he didn’t qualify for the state pass-through entity tax, which would’ve allowed him to pass the tax obligation on to the business, rather than having to pay personal income tax on it.
Because of the size of the settlement, including it on his personal tax return would’ve had a massive impact on his taxable income, driving up his tax rate and exponentially increasing his tax burden.
We worked together with his business attorney to bring on a family member as a partner in the law firm. The family member was already employed by the business, so the existing dynamics of the firm didn’t change. The law firm legally became a partnership, rather than a single member LLC, and now qualified for the pass-through entity tax.
Due to Plancorp’s team approach, the client was able to benefit from another advisor’s knowledge of this unique tax law and save millions in tax liability.
