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The Benefits of Tax Planning

The benefits of tax planning go beyond paying less in taxes each year. Tax planning is an important part of wealth-management that offers short and long-term tax savings designed to make it easier to build personal wealth. Alloy Wealth Management uses tax strategies and tax bill management when creating financial plans to help clients stay in the lowest tax bracket possible every year. Everyone must pay taxes but paying more than you should during the year means less money in your pocket to spend, save, and invest. 

One of the simplest ways to lower your tax bracket and begin building a nest egg is to put money aside before it is taxed using various retirement savings options and health savings accounts. Utilizing tax credits and maximizing deductions, charitable giving, and deferring income are other ways to become tax efficient. Once we meet with you and get a clear picture of your financial situation, we will recommend a plan to suit your specific needs and goals. 

When it’s time to start taking money out of these accounts we will educate you on specific strategies to help reduce withdrawals and tax liability. Planning when to make purchases or when to sell assets impacts your tax bill. Timing also matters when it comes to taking social security benefits and making withdrawals from retirement accounts. With tax management strategies, you can reduce the taxes you pay now and in the future. If you have questions or would like to speak with one of our experts, call 800-689-3935.