Services – Tax Planning
Tax Planning
Get the tax-savvy advice and strategies you need to keep more of the wealth you have worked hard to build
Tailored TAX-SMART Decisions
Tax laws and regulations are continually changing, evolving, and growing more complex. The tax code can become even more confusing for individuals, families, retirees, and business owners who have accumulated significant amounts of wealth.
At Sonmore Financial, we believe that tax planning is integral to your overall financial health. Not only is it important to incorporate tax-efficient tactics and strategies into your financial plan, but it is also imperative to consider how taxes could affect your investment returns over time. We work with a team of experienced, credentialed tax professionals to ensure that our clients’ plans are fully optimized to help them keep more of their earnings and grow their wealth for the future.
From an investment standpoint, we also incorporate tax-loss harvesting and regular rebalancing into our approach to ensure our clients are making the most tax-smart decisions no matter what’s happening in the markets.
Strategies that create efficiencies and minimize tax liabilities
Roth Conversions
Transferring a traditional IRA or 401(k) into a Roth IRA is one way to help create opportunities to minimize taxes. But this is not the answer for every person. Those considering a Roth conversion should consider whether the timing makes sense. For instance, if you think that you will be in a higher tax bracket at a certain point in time, it may make sense for you to pay the lower tax liability now. Cash flow, retirement time horizons, and tax law changes should also be taken into consideration.
Integrated Tax and Financial Planning
At Sonmore Financial, we intend to be an integral member of your financial team. This means that we work closely with your tax, legal, and other advisors to ensure that your financial plan and investment strategies accurately reflect the big picture.
Tax-Efficient Planning
Asset allocation and investment selection are two important factors that affect returns. However, the after-tax return on your investments is a much more important number than the top-line performance number on any individual investment asset.
Tax-efficient investments help minimize the capital gains associated with buying and selling stocks – therefore, minimizing taxes. We work with you to ensure that asset allocation considers the tax implications of buying and selling your investment assets.
However, taxes are only one piece of a much bigger financial puzzle. This is why creating tax-efficiency is only one of many considerations when creating the best investment plan for you.
Tax Planning Goals and Outcomes
Tax Planning focuses on the most important aspect of your investment portfolio: the after-tax number. At Sonmore, we review your current tax strategy, diagnose inefficiencies, and recommend a course of action to minimize the effect taxes have on your overall wealth. As we review your portfolio for capital gains or losses, we identify areas with relatively large gains or losses and work to minimize the tax consequences associated with trading a security.
