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Tax Efficient Strategies
Maximize Wealth, Minimize Taxes
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What Are Tax Efficient Strategies?
Smart Financial Moves to Save More
Taxes can erode your wealth if not managed properly. At Gibson Capital, we don’t let the tax tail wag the dog, however we do keep in mind strategic tax planning tailored to your financial goals.
Tax-Smart Planning for Your Future
Examples of some tax strategies
01
Roth Conversions
A Roth Conversion involves moving funds from a pre-tax retirement account into a Roth IRA. While you’ll pay taxes on the converted amount in the year of the conversion, future growth and withdrawals from the Roth IRA are tax-free, provided certain conditions are met.
02
Tax Deferral
Triple compound Interest uses tax deferral on principal, interest and taxes saves. Instead of taxes paying each year, the funds grow without interruption from annual tax liabilities. Taxes are paid when the funds are accessed. Tax Deferral allows your account to grow faster by keeping the full amount invested and compounding over time.
03
Low-Turnover Investment Strategies
This approach focuses on utilizing strategies with low portfolio turnover to minimize taxable events in non-qualified accounts (accounts not tax-advantaged, such as IRA's) For those high income earners in a high tax bracket, this strategy can help take advantage of the preferential tax treatment of long-term capital gains while reducing the impact of short-term gains and ordinary income taxation.
04
Tax-loss Harvesting
Tax-loss harvesting is a strategic investment approach that involves selling underperforming assets in taxable accounts to realize a loss. These losses can offset gains from other investments or reduce taxable income, lowering your overall tax liability. It’s an effective method to enhance after-tax returns while staying invested for long-term growth.
Your Questions, Answered
What are Tax Efficient Strategies?
These strategies can reduce the amount of taxes you pay on your income, investments, and savings, maximizing your wealth.
Are tax-efficient strategies only for high-income earners?
No, anyone can benefit from tax-efficient planning regardless of income level.
How often should my tax strategy be reviewed?
We recommend annual reviews or whenever there are significant changes in your financial situation.
Are you a tax expert?
No. CPAs are tax experts. We recommend you also work closely with your accountant.
Preserve More of Your Wealth
Let us create a personalized tax-efficient strategy to help you keep more of what you earn. Schedule a consultation today to start optimizing your financial plan.