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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.
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But how to optimize the tax advantage when there are so many different options?
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And how do you know if you aren’t going overboard , and giving taxes too much attention?
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Or are you wasting a tax advantage by using inappropriate investment vehicles in IRA’s and other tax deferred accounts?
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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.
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Insurance products are sometimes tax favored, but, unfortunately are also heavily over-sold.
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Section 529 education plans, with qualified tax free distributions, can be, but are not always the education savings plan of choice.
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Federal estate taxes can be very expensive, and you do not have to be super wealthy for them to impact on your family.
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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.
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