Whether you’re a business or an individual, a Cary Street Partners Financial Advisor can work alongside you to develop smart Tax Planning strategies.
Tax Day lands on April 15 each year, but your tax planning process should truly be a year-round venture.
Our goal is to set you up for financial success by being your constant and consistent resource as questions arise. With unparalleled experience and knowledge, our financial advisors work with your tax professionals to help understand your individual situation and offer you tactical advice along the way.
What is Tax Planning?
During our collaborative tax planning process, we work closely with you to analyze your situation and help arrange your finances in a tax-efficient manner.
Our overall objective is to help you preserve as much income as possible while maximizing your tax breaks and minimizing your liabilities. We will analyze your financial plan to help determine, along with your CPA or tax professional, what your current and future tax projections look like depending on your lifestyle and spending habits.
Why is Tax Planning Important?
Tax planning with a financial advisor at Cary Street Partners is an essential part of your holistic wealth management strategy.
For both individuals and businesses, giving yourself enough time to organize your tax records and identify your filing status can result in greater financial savings. Furthermore, staying prepared throughout the year allows you to adjust to economic, social and political conditions as they happen.
Tax laws change frequently, therefore, what you qualify for in one year could look completely different the next year. Whether you recently bought a new house, started a business, or added to your growing family, it is extremely important to have a financial advisor assist you throughout the year to provide you with the best possible outcome.
Tax Planning Strategies for Individuals
Your financial advisor will consider multiple factors when finding ways to help you individually overcome a possible tax burden. That list includes the timing and amount of income you made throughout the year, the timing and number of specific purchases, gifts or donations you made, what your retirement strategy is or should be, and whether you are taking Social Security or Medicare. By taking the time to review your portfolio with one of our financial advisors, you could save time and money.
Tax-Loss Harvesting
While investing aims to grow your wealth over time, taking calculated financial risks doesn’t always net a positive gain at first. Through tax-loss harvesting, you can take advantage of your financial losses by selling those investments at a loss to offset increases in other investments. You only pay taxes on your net profit, contributing to a reduced tax bill. Roth conversions, which involve transferring pretax money to a Roth IRA, can also help save on taxes. This strategy allows you to pay income taxes on the converted amount, which benefits you in retirement by letting your savings grow and be withdrawn tax-free.
Charitable Giving
By strategically donating to a qualified charity annually, you can get a charitable gift tax deduction. Generally, your deduction can’t be more than 60 percent of your adjusted gross income (AGI), defined by your total income minus deductions. Individual retirement arrangement (IRA) owners aged 70 ½ or older can transfer up to $100,000 in tax-free qualified charitable distributions (QCDs) each year. If you create a donor-advised fund (DAF), an account that allows you to gift money, stocks, or other assets to charitable organizations, you can receive an immediate tax deduction. These charitable gift funds can then be invested tax-free.
Get a Structured and Flexible Tax Plan.
With Cary Street Partners, you can adjust your finances on an annual basis, ensuring you’re doing everything you can to limit tax liabilities. Let us work in conjunction with your tax professional and help take your financial well-being to the next level, providing you with more peace of mind come mid-April. Contact us below to get started.
Cary Street Partners is a broker-dealer and registered investment adviser and does not provide tax or legal advice; no one should act upon any tax or legal information herein without consulting a tax professional or an attorney.
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Reach your short and long-term goals with a holistic goals-based financial plan.
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Design retirement strategies that allow you to achieve your retirement goals to live your best life.
Insurance Planning
Establish the financial risks that can take your financial plan off course and select insurance products to protect yourself from those risks.
Estate Planning
Create a comprehensive financial plan that addresses what should happen to your estate in the event of incapacitation or death.