Paying taxes is a must, but what isn’t necessary is paying more than you need to, whether it be now or in the future. However, the actions we take now may significantly affect your future tax status. In fact, it may make sense to pay higher taxes now to reduce future tax obligations! There is a myriad of factors that affect one’s tax standing, such as donating to charity, deductions on losing investments, contributions to retirement accounts, or required retirement distributions. The list could go on and on.
Therefore, it should be everyone’s goal to reduce their lifelong tax bill. To do that, we create tax management strategies driven by your financial plan, a plan that takes into account the nuances of your personal finances.
Given the complexities of taxation policy, it is of utmost importance you seek out the services of a financial advisor. Otherwise, you may get stuck with even higher taxes in retirement than those you experienced during your professional career! So don’t delay, make big changes today with the goal of preventing a big headache tomorrow.
Tax services are not offered by MacDonald Financial, LPL Financial, or affiliated advisors. Clients should consult with their personal tax advisors regarding the tax consequences of investing.