Men with Calculator

Tax Planning

Each of the three registered agents of CIM in Pennsylvania are Certified Public Accountants and Certified Financial Planners®, and have considerable experience with income and estate taxes.

And make no mistake, there is a direct link between tax planning and successful personal financial plans.

Here’s some examples:

1. Congress encourages us to save money for retirement by bestowing tax advantages onto certain retirement saving instruments.

  • But how to optimize the tax advantage when there are so many different options?

  • And how do you know if you aren’t going overboard , and giving taxes too much attention?

  • Or are you wasting a tax advantage by using inappropriate investment vehicles in IRA’s and other tax deferred accounts?

  • Under certain circumstances a lower-taxed capital gain can be more advantageous than higher taxed ordinary income from a tax deferred account.




2. Congress influences some of life choices through its tax policy.

  • Insurance products are sometimes tax favored, but, unfortunately are also heavily over-sold.

  • Section 529 education plans, with qualified tax free distributions, can be, but are not always the education savings plan of choice.

  • Federal estate taxes can be very expensive, and you do not have to be super wealthy for them to impact on your family.

  • A family trust can sometimes be the solution to money management issues. But the income tax rates on income left in trusts are prohibitively high.



Conclusion: Ignore tax implications at your peril.