There’s been a lot of confusion this year, as we all file for the first time under the New Trump Tax Law. Some people are finding that their returns are lower, or that deductions they’ve always depended on have gone away. The biggest cause that we see for a lower return is a lack of tax strategy and planning in advance – most strategies have to be in place by the end of the tax year – not at filing time.
There are estate planning implications as well – for example, if you’re considering a ROTH conversion, which can be a great strategy, there used to be q “do-over” period you had in case something happened after the fact, or if you changed your mind. However, that’s no longer the case.
There are two parts to this; 1) being proactive, and 2) investing for tax efficiency, because taxes have the ability to take the largest bite out of your portfolio and your returns, and, it’s important to remember that it’s not what you make – it’s what you keep.
That means working with a team to build a portfolio that takes advantage of taxable, tax-deferred, and tax-exempt accounts, understanding your tax bracket under the new law, and choosing investments that are tax-efficient, and, as much as possible, preparing you for the volatility and uncertainty that have been rampant in the markets.
While coordinating financial plans properly is always challenging, it is especially challenging today given with infighting across a divided Congress and under the Trump Administration. That’s why we’ll be hosting a complimentary panel discussion and dinner at Lockkeepers’ in Valley View on May 14th and 16th for those with a portfolio of $500,000 or more, but seating is limited.
During our time together, we’ll focus on helping you to avoid common mistakes such as Underestimating the Impact on Your Portfolio of the Economic Uncertainty Created by Trump’s Divided Policies, Neglecting to Help Safeguard Your Portfolio from a Possible Recession, and Not Taking Advantage of Comprehensive Tax Strategies.
Seating is limited, so if you are interested, please RSVP here.