Tax Planning for a Better Tomorrow

Shallon Weis |

Tax Planning Pro Tips: Early & Prudent

Tax planning always gets attention after the start of a new year, but the sooner you can create a well-planned tax strategy, the faster you can yield the benefits. Especially when you consult a tax professional and address tax planning earlier in your wealth accumulation cycle.

At Bradford, our tax planning philosophy is built more on helping you structure your finances so you and your family aren’t overburdened by undue tax liability rather than a strict focus on tax avoidance. Understanding the difference is important.   

Why Tax Planning is Important

Consider this fact: If you managed to shave off just $250 from your tax bill each year, through prudent tax planning and you invested that $250 at a 5% rate of return annually, you could have a tidy sum of over $15,250 waiting for you by the time you retire in 30 years!

Early attention to tax planning pays and delaying it is tantamount to leaving potentially savable dollars, of your hard-earned money, on the tax table. The longer you defer tax planning, the more money you’ll end up oweing and paying in taxes. That money could potentially have been saved, through a reduced tax bill, invested and grown, through the magic of compounding, over many years.

How Bradford Financial Center Helps

We help our clients through long-term tax planning strategies – and that’s exactly how we’ll help you. Tax planning doesn't start on the date of filing your tax returns. Prudent tax planning often starts long before – sometimes even before you make investment decisions that trigger a tax liability. We can help devise tax planning strategies that minimize taxes, maximize tax refunds, and guide you to optimize your tax-friendly investment returns.

Here’s what we can do for you through our Tax Planning service: 

  • While the best advice you can get is: Save. Save. Save…as much as you can. The next best advice is: Be careful how you invest those savings. Our tax planning advice will include considerations on whether you should invest with pre-tax dollars or post-tax income. How you invest, and in what types of vehicles, can make a significant difference to the taxes you pay. Our Bradford Tax & Accounting tax specialists can help you navigate through the various advantages and disadvantages of choosing one strategy over another.

  • When planning for tax impact on your income, we’ll also plan for the types of income that you might receive: Dividends, Interest, Annuity payments, Capital Gains, Inheritances, Employer, or Government benefits. While all of these are potential income streams in retirement and before, each has different tax planning implications.  

  • Our certified financial planners will help you foresee impacts on your future net wealth. If left unplanned, your net wealth could be diminished due to likely claw-backs to benefits, and the possibility of erosion to your estate through substantial taxes.

  • We’ll help you mitigate possible tax impacts when it comes to your estate. A good tax plan will ensure that future generations do not bear the burden of taxes as a result of the legacy you leave them. But to ensure a tax-advantaged inheritance to your beneficiaries, you need to put appropriate plans in place now...and that’s where our certified financial planners can help.

To begin assessing your tax liability and developing a smarter tax strategy, Contact Us or explore the team of Bradford Financial Center financial advisors who can help.