Personal tax planning with Covenant Wealth Advisors is a specialized service that helps you reduce your income tax liability. Reducing your income tax starts with analyzing your tax returns, sources of income, and financial assets. Then, we use advanced tax planning software and our tax experience to identify tax reduction strategies for you and your family.
According to research from the Tax Policy Center, the top 20% of income earners in the United States paid 69% of income taxes. So, if you earn more than $115,000 per year, this means you are paying the bulk of taxes in our country.
While paying more than your share of taxes may feel like your patriotic duty, for many investors, reducing your current and future tax burden can be a major goal.
Unlike filing tax returns, which is a rear-view-mirror, reactive approach to taxes; tax planning is a forward looking, proactive approach to tax reduction. Both are important, which is why we'll collaborate with your CPA before implementing any tax strategies.
Whether you are nearing retirement or currently retired, tax planning has the potential to save money. What you do with those savings is up to you.
Why do I need tax planning?
I want to reduce my taxes.
There were over 5,000 tax code changes between 2002-2012. The highest combined federal and state marginal income tax rate is over 50% for many high income investors. Tax planning can help you take advantage of the latest tax laws to reduce your tax liability.
I want to implement smart gifting strategies to my favorite charity.
We have a lot of experience with families who are charitably motivated. In our experience, we've found that many charitably inclined families don't take advantage of current tax laws. Tax planning has the potential to maximize your charitable donations while also reducing your tax liability.
I want to eliminate unwanted tax surprises.
Nobody likes tax surprises. Projecting your future tax burden has the benefit of identifying future tax opportunities and obstacles. We'll create a personalized report that projects future tax opportunities and obstacles.
I want to know how to increase after-tax returns on my portfolio.
According to research from Vanguard, tax-managed investing has the potential to increase returns by upwards of 0.75% per year. On a one-million dollar portfolio, that's a savings of $7,500 per year! We can create a personalized strategy to mitigate current and future taxation on your portfolio.
Schedule Your Free, No Obligation Tax Planning Consultation