Income Tax Planning
Income Tax Planning in Delaware
As financial advisors, we recognize that many wealth management decisions throughout the year can bear significant impact on an income tax return. Tax efficiency is a vital part of a financial plan at every stage, and so we approach tax planning as both a year-round and lifelong process. It’s important to review your income, expenses and potential tax liability throughout the year.
Our financial planners stay abreast of the potential tax implications on investments, thus we are able to provide a tax-inclusive approach to wealth management that can both reduce our clients’ tax liability and help them achieve their financial goals.
A Comprehensive Wealth Management Plan Includes Income Tax Planning
The U.S. tax code is thousands of pages of legislation, court rulings, and legal interpretations. It pays to get professional help to consider tax planning. The following are just a few ways in which Income Tax Planning can have significant impact on your overarching Wealth Management strategy:
- Deduction planning and timing
- Charitable planning: Donor Advised funds and gift stacking
- Pre-tax and after-tax savings analysis
- Tax-efficient investing in regards to security selection and tax loss harvesting
- Business entity selection from a tax perspective
- QBI planning and analysis
- Current and Retirement income tax modeling
- Tax-efficient retirement modeling
A professional financial advisor will help tailor the best strategies for you and your family. Taxes can make an enormous difference in your post-retirement income, so it pays to get the best advice to make sure you maximize your hard-earned retirement savings!
Does This Sound Like You?
Key Concerns:
Current income taxation
Employee retention
Employer-sponsored retirement plans
Ages:
36 and 34
Summary:
Running a successful business is hard enough on its own. Jared and Lance recognize that their employees are vital to their long term success, and they want to make sure their future, and their employees futures are secure.
Jared and Lance run a successful law firm with multiple associates. They know that larger firms are always looking to hire talented attorneys away from smaller practices. Jared and Lance want to know how they can keep employees in the practice, while also benefiting personally from a tax perspective. They wanted to look into Employer-sponsored retirement plans to achieve these objectives.
Advisor’s at Black Diamond understand the value of employees to any successful business, and also how important income taxation is in the employer-sponsored retirement planning process. Through extensive dialogue, we were able to understand from Jared and Lance, that they were most concerned with income tax minimization, but as a secondary concern, they wanted to use the practice’s resources to prepare their employees for retirement and keep them in the practice.
We understand that resources are finite and that ERISA is an incredibly complex set of rules that all plan sponsors need to understand. We pride ourselves in our ability to integrate the complex tax rules, cash-flow considerations, and human resources and education elements that are paramount to employee retention. We bring our expertise to the table to streamline the retirement planning process, and we also work with our Plan Sponsors, Accountants, and Third-Party administrators to create the most efficient retirement plan. 401K, 403b, 457, Cash Balance Pensions, DB pensions, Simple IRA’s, SEP IRA’s and Solo 401k’s are all unique planning tools we enjoy sharing with our clients. Jared and Lance were thrilled with our process, and now have effective retention and tax-efficient retirement plan in place.
Please Note: The above Case Study is hypothetical and does not involve an actual client. Clients and prospective clients could experience different results while engaged with BDFS capital.
