Tax Planning

Virtually every financial planning decision has a tax consequence in some respect, either short-term or long-term. With this in mind, tax planning is an integral part of every financial plan.

Major tax-related areas that are reviewed as part of a financial plan include:

• Income taxes on earned income, and the associated marginal tax bracket
• Income taxes generated from unearned income, such as interest and dividends
• Whether or not municipal bonds are appropriate investments in order to save on taxes
• Whether stock options should be exercised, and the associated tax implications
• Maximizing the use of long-term capital gains to reduce taxes
• Categorization of expenses on one's tax return to minimize taxes
• Possible Alternative Minimum Tax (AMT) issues
• Charitable contribution methods to maximize tax savings
• Loan refinancing to maximize tax savings
• And the list goes on...