Tax-Efficient Investing Strategies That Preserve Your Wealth

You’ve probably focused most of your retirement planning on building wealth. But there’s another side to the coin that is equally important – the impact that taxes can have on your accumulated wealth. Fortunately, there are several tax strategies that can help preserve your wealth and improve your financial picture now and in the years to come. Unfortunately, the tax code is too complex for many investors, so it’s difficult to know what the right moves should be.

At Rodgers & Associates, we’ve been helping investors implement tax-efficient investing strategies for over 20 years. We focus on investors who have retired or will retire within five years. Our primary goal is to help our clients preserve their wealth. One of the ways we do that is through tax-efficient investing strategies.

The tax code is complex, but there are some sound tax strategies you can use to avoid paying excess taxes on the wealth you’ve worked so hard to build. Want to learn more? Contact us to see how you can preserve your wealth with tax-efficient strategies.

Some Tax Strategies Our Advisers Can Help With

Income Taxes

Some tax strategies help you save taxes immediately, but sometimes it is better to pay some taxes now to achieve a bigger benefit later in life. Determining when each is appropriate is something that should be done on an individual year to year basis. There may be opportunities to do partial Roth conversions or tax loss harvesting. These decisions can be complicated and too often opportunities are lost to create a more tax efficient portfolio.

Asset Location

One mistake we see far too often from a tax efficiency perspective, is holding assets in the wrong type of account. An adviser who is looking at your total financial picture can provide guidance on where to hold your equities. Hint – probably not in your IRA or 401k because you may lose the benefit of paying capital gains tax instead of ordinary income tax. Of course, each case is different and would need to be looked at based on each individuals’ circumstances.

Estate Taxes

Much has changed over the past few years including making estate exemptions more permanent and indexing them to inflation. Does that mean that estate planning is no longer required of you? What about new changes to Power of Attorney laws? What about using estate tax planning to maximize your charitable intentions? Once again, these issues are often overlooked and can create opportunities to keep more of your hard-earned money. Sometimes, simply making sure that the estate plan you had created for you is properly implemented adds significantly to your overall wealth and legacy.

Charitable Planning

If you are charitably-minded, and maybe even if you are not, the tax code has many rules that reward giving to charities. Understanding and following the rules is paramount as you try to merge the potential tax savings with your desires. Trying to minimize the taxes from selling your beach home? Want to get the most for both you and your charity? Want to get a tax benefit but continue to garner an income? All these things may be possible with sound charitable planning strategies.

Want to reduce your tax burden and preserve more of the wealth you worked so hard to create? Rodgers & Associates can help! We’ve been working with retired investors or those who are nearing retirement since 1996. Contact us to see what we can do for you.

2025 Lititz Pike, Lancaster, PA 17601
Phone: 717-560-3800, Toll-Free: 888-876-3437