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What is Tax-Efficient Planning?

When it comes to investing, while your investment return is important, your after-tax returns are even more important. In retirement, that may be the most important financial lesson of all.  It's never too late to start, but by starting this planning early in your career, you will provide yourself with opportunities and flexibility down the road that many do not enjoy.  No matter what stage of life you're in, tax-efficient planning will add value to your financial situation.  

Why tax-efficient planning matters.

If you are like most people, you will enter retirement with substantial savings - assets from your retirement plan at work, your investment portfolio, and money in the bank. The question is: What do you do with all of it? How do you convert these assets into an income stream?

Each of these questions are very important; however, you can't answer them without knowing, first, how taxes come into play.  This is because of an inescapable truth: every financial decision you make carries a tax consequence.  The tax code is very complex and the rules apply differently to different types of accounts; which is why it is so important to work with professionals who can help you create a tax-efficient plan for drawing income when you retire. 

In order to plan for a tax-efficient retirement, you have to plan to make the financial moves that will help augment the benefits from your investments and reduce the taxes. We can show you how.  Moreover, we can tell you what you are not doing that you should consider doing.

Tax-efficient planning is an ongoing endeavor.  The sooner you get started the better; but, it is never too late to begin as the process is never really complete.  Because tax laws change frequently, you will want to work with a financial professional who can coach you, using tax-efficient principles, throughout your career and your retirement. 

The professionals at Martin Tax & Financial Services offer tax-efficient planning advice. You make the decisions; you are always in control - we simply share our input and explain why some decisions may be better than others given your particular financial situation. This collaboration may open up new possibilities for tax savings and wealth preservation.

Contact us to request more information about the ways we plan to make retirement less taxing.

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