Tax-Advantaged Capital Accumulation

Many of our clients have a multitude of questions regarding their tax situation. There are various ways to build wealth in our constantly evolving world. When it comes to financial planning, taxes are always a part of the conversation.  For many of our clients, minimizing their taxable income in the future is a large concern. For these clients, we start with an in-depth conversation about their questions and concerns for the future. We then come to a decision together on how we can address those concerns. Tax-advantaged capital accumulation can often provide multiple solutions.

There are many different savings-vehicles that can be utilized to minimize an individual’s taxable income. Depending on many factors of someone’s personal situation, we will determine what options may be optimal for them. A Roth-IRA can be a great tool for tax-free income in retirement. However, what happens if you need these funds before age 59 ½ ? What happens if your income level keeps you from being able to utilize a Roth? What if you need to contribute more than $6,000 a year? All of these questions are very common. This is why many of our clients sit with us annually; to review the plan we have put in place and to ensure that we’re on track to help minimize any potential tax burden in the future.

The average workplace retirement plan has changed vastly over time. Not so long ago, any position at your local retail store would have supplied you with a pension (Lifetime income) in exchange for a 20-30 year working period. Today, pensions are becoming less and less common. A large portion of the workforce is not aware of the amount of money they need to cover their expenses in retirement. Far fewer employees are aware of what they need to accumulate in their pre-tax 401(k) to cover their expenses in retirement after taxes are paid. Now that the average worker is offered a fully taxable 401(k) plan instead of a pension, tax-advantaged capital accumulation has become increasingly beneficial.

Registered Representatives of Equity Services, Inc. do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.