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Strategies To Reduce Your Lifetime Tax Liability 

If you are like many, you don’t begin to think about how to reduce your tax liabilities until it is time to file your federal and state taxes. By then, it is too late to take advantage of many opportunities available if you plan. Tax planning should begin at the beginning of the tax year to see the most significant savings on your taxes. Cummings Wealth Management advisors can assist you in developing strategies to reduce your tax burdens.

What Is Tax Planning?

Though taxes are essential to funding the services governments provide, most people want to pay as little as possible to preserve their financial health. Tax planning provides a framework for lowering annual payments.

However, it isn’t just about reducing your out-of-pocket costs; it is an approach that considers your overall goals. Strategies for managing your lifetime tax liabilities includes the following:

Analyzing investments to determine whether they should be in taxed or tax-deferred accounts

Choosing the most efficient strategies for distributing your retirement funds

Assessing upcoming large purchases to determine the best time to buy to save on your taxes

Determine if lifetime Roth IRA Conversion strategies are appropriate for you

Choosing the tax-deductable gifting strategies that are right for you

Coordinating Social Security election timing with lifetime tax liabilty

Furthermore, you want to consider ways to reduce estate taxes for your beneficiaries.

How Does Cummings Wealth Management Help?

While you will need your tax professional’s help completing your taxes, our advisors work with you to devise strategies for increasing your tax efficiency while still meeting your financial and life goals. When creating your tax plan, we consider your income, retirement goals, significant expenses, and investment portfolio. Get in touch with us today to schedule a consultation.

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