Tax Planning: Making the Tax Code Work For You

Because taxes are a fact of life, tax planning is an essential component of creating abiding wealth. Taxes can take a big bite out of your portfolio, so it’s worthwhile to take full advantage of every opportunity to reduce your tax liability– money not spent on taxes is money you can use in furtherance of your personal and charitable goals.

Tax planning, simply put, is creating a comprehensive, well-timed strategy that yields the best possible outcome in terms of tax liability across all of your financial concerns. Tax planning is truly interdisciplinary  because taxes touch on so many aspects of wealth management– investments, estate planning, charitable giving and financial planning, among others.

When you factor in that each component has its own applicable taxes, brackets and jurisdictions, and it’s easy to see why tax planning is so complex.

That’s why we apply a team approach to tax planning– it gives us a more holistic view of the total impact of options being considered, which yields better overall outcomes.

What Can Good Tax Planning Do for You?

Taking all available credits and deductions is only the tip of the iceberg; there are many creative strategies for making the tax code work for you. Here are just some of the things we help you achieve:

  • Reduce Investment Tax Liability

    Reduce tax liability by selecting tax-advantaged investments and reducing the number of taxable transactions that take place while managing your portfolio

  • Reduce Capital Gains Taxes

    Reduce capital gains through tax-loss harvesting

  • Reduce Portfolio Volatility

    Reduce portfolio volatility by using tax liability to balance out losses and gains

  • Reduce Taxes Now by Deferring Them

    Defer taxes by selecting tax-deferred investments and timing taxable activities wisely

  • Bypass Taxes Altogether

    Bypass taxes altogether by making charitable donations of investments directly rather than cashing them out

  • Reduce Estate Taxes for Your Heirs

    Reduce estate taxes for your heirs with trusts and by structuring/timing gifts and asset transfers wisely

These are just some examples of how tax planning can benefit your portfolio– there are many more options ranging from simple to complex that may work for you, depending on your particular situation.

For many of our clients, we are able to come up with new options that get good results, and we would do our best to do the same for you.

For Us, North Carolina Tax Planning Is a Team  Sport

At Abiding Wealth Advisors, tax planning begins with bringing together a team of advisors with expertise in all aspects of wealth management that apply to you, including investment management, estate planning and financial planning in addition to tax planning. We all focus together on how to achieve the best results for you, taking everything into account– advantages, disadvantages, risks, potential rewards, benefits and consequences.

The team can be made up of different members of our team, including one of our two licensed North Carolina tax planning specialists (CPAs), or we will also work cooperatively with your existing advisors and provide a fresh set of eyes, ideas and a different perspective.

We are happy to serve in whatever capacity we are needed, and we always recommend you discuss our ideas and recommendations with your other advisors before making any decisions.

Whatever You Need, We’re Here and Ready to Help

Whether you need someone to work with your existing tax advisor to review your current strategy or generate new options, or are seeking independent tax planning advice that integrates well with all of your wealth management and financial planning efforts, we’re here to help.

Please contact us to schedule a consultation with one of our North Carolina tax planning specialists—we will be happy to get to work making the tax code work for you.

Tools and Resources

Am I withholding enough from each paycheck to cover my taxes?

What could the impact be on my returns if I opt for a tax-advantaged investment?

How much could I save in taxes with the mortgage interest deduction?

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