Financial decisions can be difficult and may affect both current and future tax bills so having a team of professional advisors ready to help can be a great advantage.  It is wise to make sure your advisors know each other and work well together to achieve the greatest benefit.  During your year-end tax planning coordinating tax, legal and financial advice in the following three areas may be in your favor.
Investments – As expected, capital gains and losses from sales of your securities will affect your taxes but the kind of investments you make can have an impact as well.  Purchasing municipal bonds to generate tax-free interest could unintentionally create income subject to the alternative minimum tax, for example.
Insurance – Taxes may also be affected by the type of health insurance you choose.  For example, you can save prime tax dollars when a Health Savings Account (HSA) is used in conjunction with a high-deductible health plan.  HSAs are funded with pre-tax cash and used to cover medical expenses by taking tax-free withdrawals.
Estate planning – Establish good communication between your tax and legal advisors when preparing wills, trusts and beneficiary designations.  These documents will provide the framework for carrying out your wishes and you want to make certain estate tax consequences are minimized for your heirs.
As part of your professional team, we are ready to help.  If you would like to schedule a comprehensive review of your goals, please give us a call.