Proactive tax planning considers the tax implications of individual, investment or business decisions, usually with the goal of minimizing tax liability.
Although financial planning and wealth management decisions are rarely made solely on their tax impact, you should have a working knowledge of the income tax or estate tax issues and costs involved.
A major goal of proactive tax planning is minimizing federal income tax liability. This can be achieved by:
Life event planning focuses on the impact of significant events, because some events in life come with tax considerations, like retirement and also the stages of your overall investment plan.
If you give away wealth, during your life or at death, you may incur federal taxes—and possibly additional state taxes. You can help protect the assets you transfer from excessive depletion by understanding these taxes and the various strategies you can use to minimize them.
Learn how a tax efficient distribution strategy can help your financial future.