Why Tax Planning Matters

Almost every financial decision you make has an effect on your taxes and, ultimately, your bottom line.  Here are some things that can reduce your tax liability.

Ways to Reduce Your Taxes

  • Tax credits
  • Tax deductions
  • Eliminate tax penalties
  • Choose correct filing status
  • Timing of income collection
  • Timing purchases and other expenditures
  • Timing of buying and selling assets
  • Using retirement plans
  • Investment selections
  • Titling of your financial accounts and other assets
  • Beneficiary designations
  • Insurance policies
  • Gifting of assets
  • Wealth transfer strategies
  • Inheritance
  • Estimated payments and tax withholdings

I cannot emphasize enough the importance of scheduling a proactive meeting with a qualified tax planner to strategize ways to reduce your current and future tax burden.

Do You Dread Preparing Taxes?

Proactive Tax Planning each year can also help reduce negative surprises during tax season.  As a CERTIFIED FINANCIAL PLANNER™ and Tax Advisor, I emphasize tax efficiency as a way of helping my clients pursue their financial goals.  I have prepared and reviewed thousands of tax returns with varying levels of complexity and opportunistic planning.

Tax Planning can help keep more of your hard earned money in your pocket.  It is simple…if less money goes toward your federal and state(s) tax liability, then you have more money to save, spend, invest, gift, etc.  It can also help you reduce the stress and anxiety levels that paying too much tax can cause.

Constant Contact and Communication

Does your Tax Advisor, your Financial Planner, your Insurance Agent, and your Estate Planning Attorney stay in contact regularly and collaborate with each other before making recommendations on an ongoing basis?

I am going to go out on a limb here and guess…NO.

This is why I serve as a Comprehensive Wealth Manager for my clients, offering guidance on their entire financial picture.  I often refer to myself as the quarterback of their financial plan, specializing in Tax Planning, Estate Planning, Investment Services, Retirement, and Insurance.

It is my job to coordinate all of these areas and offer guidance on how to pursue financial goals more efficiently each year as they approach retirement.  One of the key ways to work towards financial security is by minimizing tax liability.

“It is not what you earn; it is what you and your family keep.”

For many, it seems as if the word “Tax” is a four letter word.  However, Tax Planning is the easy part.  It is the lack of planning can create headaches from unfavorable tax season surprises and ensuring ongoing anxiety.

For example, if you recognize a $10,000 return on your investment, then you are likely going to be a pretty happy camper.  However, what if I told you that you could potentially pay back over $5,000 of that gain on your income tax returns.

What if I told you that, with a little bit of Tax Planning, there are ways to pay zero taxes on $10,000 of investment income?

It never ceases to amaze me how much people willingly overpay their taxes before they meet with me and take action.  At a minimum, you probably do not want your hard earned assets causing you to pay more in taxes than you need to.  There are several tax savvy investment options out there.  Here are just a few that I help my clients with…

  • College Savings 529 Plan
  • Roth IRA/401(k)
  • Municipal Bonds
  • Tax Deferred Retirement Plans
  • Life Insurance
  • Real Estate
  • Alternative Investments

While we all want to take the right steps to ensure that we are not paying more taxes than necessary, I believe the perception that Tax Planning is complicated is a primary reason why people avoid it like the plague.

There is no time like the present to get on track

You can put yourself on a path towards success by contacting my office to schedule a financial physical, which includes a thorough assessment of your current and future tax liability.  Life can be more enjoyable when you are making confident financial choices.  Note: my clients enjoy having year-round access to me, unlike other seasonal tax resources that they have worked with in the past.

If you have any questions or comments about Tax Planning, then please contact me at my office or
email me.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing in securities is subject to risk including risk of loss of principal. No strategy assures success or guarantees against loss.


Kevin Foster, CFP ®
Comprehensive Wealth Manager | Tax Advisor
Chandler, AZ 85226