LOOKING BEYOND THE NUMBERS
What You Keep Can Matter Alongside What You Earn
Investment performance is only one part of a financial outcome. Taxes may also affect the amount of money available to support your retirement, family, business, charitable goals, and future legacy.
Tax-efficient planning does not mean avoiding taxes or allowing tax considerations to control every decision. It means understanding where taxes may influence your financial strategy and evaluating available choices within the context of your complete financial picture.
Legacy Wealth Concepts helps you incorporate these considerations into your planning while working alongside your qualified tax professional when specialized tax advice or calculations are needed.
Account Selection
Consider how taxable, tax-deferred, and potentially tax-free accounts may serve different purposes within your long-term financial strategy.
Roth Conversion Considerations
Evaluate whether converting certain tax-deferred retirement assets to a Roth account may be worth discussing with your tax professional based on your circumstances.
Connecting Tax Considerations With Your Broader Financial Plan
Investment Placement
Evaluate which types of investments may be appropriate for different accounts based on your goals, investment strategy, and potential tax treatment.
Capital-Gain Considerations
Review how investment sales, portfolio changes, and realized gains or losses may affect the tax characteristics of your investment strategy.
A TAX-AWARE APPROACH
Retirement Contributions
Review available workplace plans, individual retirement accounts, and other savings opportunities as part of your current and future financial plan.
Charitable Giving Strategies
Explore financial approaches for supporting meaningful causes while considering the potential tax treatment with your qualified tax advisor.
Retirement Income
Consider how withdrawals from different accounts may affect your income, taxes, cash flow, and long-term retirement strategy.
Legacy and Wealth Transfer
Consider how account ownership, beneficiary decisions, gifts, and wealth-transfer strategies may interact with your estate and legacy objectives.
Are your investments held in appropriate types of accounts?
Are you making effective use of available retirement plans?
How might the timing of an investment sale affect your plan?
Could required retirement distributions affect future income?
Are tax considerations included in your legacy plan?
The answer is not always the strategy with the smallest immediate tax bill. The appropriate decision should also consider your goals, income needs, investment risks, timeline, liquidity, and long-term financial position.
How Could Taxes Affect Your Financial Decisions?
SEEING THE COMPLETE PICTURE
How could retirement withdrawals affect your taxable income?
Could a Roth conversion be worth evaluating?
Are charitable goals incorporated into your financial strategy?
How might a career transition or retirement change your tax situation?
Are your financial professional and tax advisor working toward coordinated goals?
PREPARING FOR RETIREMENT INCOME
Different Retirement Assets May Be Taxed Differently
Retirement income can come from several sources, including workplace retirement plans, IRAs, Roth accounts, pensions, Social Security benefits, taxable investments, and other assets. Each source may be subject to different tax treatment.
The order and timing of withdrawals may influence current income, future account balances, Medicare-related costs, required distributions, and the resources eventually available to beneficiaries.
Legacy Wealth Concepts helps you evaluate retirement-income decisions as part of your overall plan and coordinate relevant tax questions with your qualified tax professional.
Income-Source Coordination
Understand how different retirement resources may work together to support your anticipated spending needs.
Withdrawal Considerations
Evaluate the potential effects of drawing income from taxable, tax-deferred, and potentially tax-free accounts.
Required Distributions
Prepare for mandatory retirement-account distributions that may affect income and tax considerations later in retirement.
Multi-Year Planning
Look beyond a single tax year when evaluating decisions that may affect your retirement over an extended period.
IMPORTANT CHANGES, IMPORTANT DECISIONS
Financial Transitions Can Create New Tax Considerations
Retirement, a job change, severance package, pension decision, business sale, inheritance, marriage, divorce, or the loss of a spouse can change your financial and tax circumstances.
During these transitions, it may be important to consider retirement-plan options, investment gains, benefit elections, income timing, insurance coverage, and the potential effect of multiple decisions occurring within the same period.
We help you organize the financial questions and work with your tax professional to understand matters requiring individualized tax guidance.
PLANNING FOR BUSINESS AND PERSONAL WEALTH
Your Business Decisions and Personal Finances Are Connected
For business owners, retirement savings, personal investments, business cash flow, succession planning, insurance, and an eventual ownership transition may all intersect with tax considerations.
Legacy Wealth Concepts helps business owners view these decisions together and coordinate financial strategies with their attorneys, accountants, and other qualified professionals.
Business retirement-plan considerations
Personal and business cash-flow planning
Key-person and continuity strategies
Ownership and succession planning
Preparing for a possible business sale
Connecting business value with retirement and legacy goals
A COLLABORATIVE APPROACH
Financial Planning Coordinated With Tax Expertise
Tax-efficient planning is most effective when financial and tax professionals understand the client’s overall objectives and areas of responsibility.
Legacy Wealth Concepts focuses on the financial-planning and investment components of your strategy. When a decision requires tax projections, return preparation, accounting, legal documents, or individualized tax advice, we coordinate with the qualified professionals you select.
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Identify the Decision
Clarify the financial choice, goal, or transition being considered.
Evaluate the Financial Impact
Review how the decision may affect investments, income, retirement, liquidity, risk, and long-term objectives.
Coordinate With Your Tax Professional
Bring the relevant information and questions to your qualified tax advisor before taking action when appropriate.
PLANNING THAT EVOLVES
Tax Considerations Can Change Along With Your Life
Income, employment, investments, family responsibilities, tax laws, and financial goals can change over time. A strategy that was appropriate several years ago may no longer align with your current circumstances.
Regular financial reviews can help identify decisions that should be reconsidered and questions that may need to be discussed with your tax professional.
BRING GREATER COORDINATION TO YOUR FINANCIAL DECISIONS
Bring Greater Coordination to Your Financial Decisions
Let’s begin with a conversation about your financial goals, the decisions ahead, and where tax considerations may need to be incorporated into your broader strategy.
Legacy Wealth Concepts and its financial professionals do not provide tax or legal advice and do not prepare tax returns. This information is provided for general educational purposes and should not be considered individualized tax guidance. Tax treatment depends on each person’s circumstances and applicable laws, which may change. Clients should consult a qualified tax professional before implementing tax-related strategies. Investment and financial-planning decisions should not be based solely on tax considerations.