What is Tax Planning?
Tax planning is the strategy of aligning your financial goals and resources with your financial plan, in an effort to optimize outcomes, while deploying sound strategies in efforts to reduce current and future taxation. Putting a plan that does this successfully is called “tax-efficient.”
There are several considerations that should be made during tax planning, some of which are:
- Timing of income
- Size of income
- Timing of purchases
- Planning for other expenditures
- Tax-efficient liquidations or dispositions of assets
- Estate freeze techniques
- Charitable giving strategies
- Estate planning to reduce future estate taxation
Good tax planning strategies don’t just include evaluating your present financial situation, but also saving for retirement, or possibly engaging in tax-loss harvesting.
Some questions for those unfamiliar with tax planning may include:
- How can I reduce income taxation in the current year?
- What is a qualified retirement plan?
- How do municipal bonds work?
What can you expect from Tax Planning with Midwestern Financial?
Our forward tax planning techniques are variable and advanced depending on your individual situation. Most of what we try to take into account and accomplish with each client’s tax plan encompass questions like:
- How do we minimize your taxes today and tomorrow?
- What bracket are you in?
- Can we reduce your income below this tax bracket? If yes, let’s do it. If not, why?
We’re not CPAs, but we are constantly thinking about the next dollar you make and how it can best be put to work for you. Our ultimate goal is to assist you in understanding how deploying such strategies can reduce taxation today or well into the future.
Midwestern Financial Group: Fiduciary Duty and Your Interests
There’s no need to go it alone when it comes to financial planning. Our team of experts can help you hit your targets, whether you’re looking to invest, save for college, or manage your assets.
We’ll work with you to create a custom plan that fits your needs, and we’re happy to serve clients based in Iowa and beyond. So reach out today and let us help you achieve your financial goals.
