In our planning, we utilize strategies aimed at managing and reducing your tax exposure. We analyze the ways in which you can reduce income taxes, capital gains taxes, alternative minimum taxes and estate taxes.

You may already be using accounts that are tax-deferred and tax-advantaged. This is a great step, but when we make investment recommendations, we go beyond tax-deferred and tax-advantaged. We manage our clients’ money differently for accounts that are qualified and non-qualified accounts, utilizing strategies such as tax-efficient mutual funds, municipal bonds, and tax-loss harvesting.

Another strategy to consider is a 1035 exchange, which allows for the tax-deferred transfer of the cash value from an existing life insurance policy or annuity to a new contract. While this move generally avoids immediate income tax on accumulated gains, it is essential to follow IRS ‘like-kind’ requirements and ownership rules. Potential tax implications may still arise if the original policy has outstanding loans or if the exchange is not executed as a direct company-to-company transfer.*

There are alternative investment strategies designed to reduce income taxes in the year of purchase, which we analyze and incorporate when it’s an appropriate fit for our client.

Our estate planning is focused on reducing estate taxes.