Tax Planning

Tax Reduction can be achieved with careful tax planning. Examples include utilizing tax-managed funds, creating a retirement plan(s), and tax loss harvesting.

Most tax planning strategies allow individuals to defer taxes to a later time period — usually at a planned retirement date, assuming income tax rates will be lower for individuals who are no longer working. Some examples of deferring income taxes can be accomplished by investing in an IRA, retirement plan, or an annuity.

The opportunities to avoid taxes are few and far between. The IRS is not very generous; however, there are tax strategies that FIS can implement for their clients to avoid taxes. Some of these tax strategies include asset placement, Roth IRAs, and the creation of a Bypass Trust.

FIS specializes in helping clients decide the optimal time to take Social Security benefits. Knowing when to receive social security helps maximize benefits and improves the overall success of the financial plan. Factors that should be considered include: age, current health, life expectancy, retirement age, spousal benefits/status, and expected inflation.

Through a diagnostic analysis of clients’ portfolios and personal data, FIS can determine the most appropriate option for clients.

Tax Loss Harvesting is invaluable in maximizing portfolio performance during market downturns. This strategy allows FIS–on behalf of the client–to purposely sell (harvest) an investment(s) at a loss, based on specific parameters within a taxable account.

Simultaneously, FIS will buy an equivalent investment in order to avoid market timing. Thirty-one days later, FIS will buy back the same investment(s) in order to avoid the “wash sale” tax rule. These losses can be carried forward for the duration of the client’s life.