Tax Planning

Utilizing tax reduction strategies to optimize income and investment yields

Tax planning is an essential element of every financial plan or investment approach

Taxes can significantly diminish your income and investment gains, underscoring the importance of meticulous planning. At Vitality, we integrate your unique tax circumstances into your personalized financial plan and investment portfolio.

We diligently work to minimize tax implications across all aspects of your financial strategy. Our comprehensive tax strategies are tailored to align with your retirement planning, estate planning, and investment objectives.

While taxes are an inevitable aspect of financial management, our expertise ensures that your savings and assets are managed in a tax-efficient manner.

Discover more about our tax planning and mitigation strategies by reaching out to us today.

Tax Planning and Mitigation Strategies

At Vitality, we offer insights into your future tax outlook and the implications of present decisions on your wealth tomorrow. Your fiduciary advisor possesses a deep understanding of your financial objectives and wealth management concerns. With this intimate knowledge, they provide a comprehensive understanding of how taxes shape your financial plan.



Tax Return Assessment

Effective tax planning commences with a thorough examination of your tax return.

Your tax return serves as the cornerstone of your entire tax profile, presenting valuable opportunities for financial planning enhancements. We delve deep to uncover potential areas for improvement, gaining a clearer understanding of your overall financial landscape to craft a more comprehensive financial plan.

Furthermore, we collaborate with your CPA (if applicable) to explore novel strategies for maximizing future savings.

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Tax Shelters & Deferral Tactics

Employing the right tools and investment instruments leads to reduced lifetime taxes.

At Vitality, we explore numerous avenues to distribute your income in the most tax-efficient manner feasible. These strategies may encompass retirement plan contributions, conversions, contributions to HSA or 529 accounts, and charitable giving.

Retirement plans like IRA, Roth, and 401(k) can maneuver income across tax years, shield assets from creditors, and safeguard income over extended periods. Factors such as employment circumstances and income levels may dictate the viability of available options. The unique advantages of Roth conversions amplify their appeal in planning. Integrating other planning methodologies can further optimize tax management.

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Tax-Smart Portfolios

Our investment portfolios are crafted and overseen with tax considerations at the forefront.

Given that taxes can substantially impact investment returns, we consistently aim to construct and manage tax-efficient portfolios for our clients.

Various investment types carry distinct tax implications. From stocks and bonds to mutual funds, exchange-traded funds (ETFs), annuities, real estate investment trusts (REITs), and private placements, each offers unique tax advantages or disadvantages.

We harmonize these investment tax attributes with your financial objectives to fashion the optimal portfolio, forming a crucial component of our continuous investment management approach.

Capital Gains Management

Prudent Management of Short-term vs. Long-term Capital Gains

Capital gains realization in portfolios manifests in two main forms: asset/investment sale or fund distribution. Taxation diverges significantly between short-term (held <1 year) and long-term (held >1 year) gains, with long-term gains typically taxed at a lower rate.

Navigating when to sell or hold investments can be daunting, with far-reaching consequences. At Financial Synergies, we vigilantly address these tax complexities. Our collaborative approach involves the portfolio management and advisory teams examining your comprehensive financial scenario, ensuring tax decisions are aligned with your holistic financial plan, not solely the investment portfolio.


Tax-loss Harvesting

An effective tactic when implemented correctly.

Tax-loss harvesting can diminish your overall tax liability by offsetting taxable portfolio gains with losses. However, it's crucial to preserve exposure to the asset class or security post-harvesting. We aim to maintain investment exposure and keep your funds actively deployed to optimize returns.

While some advisors only seek tax-loss opportunities annually, often near year-end, we recognize that these opportunities can arise throughout the year. Failing to capitalize on timely tax-loss opportunities may result in their swift disappearance. We vigilantly monitor for such opportunities and act promptly to enhance our clients' after-tax portfolio returns.

Tax-advantaged retirement accounts

Your most powerful tax deferral tool.

Prudent use of retirement accounts can be the most powerful tax deferral tool at your disposal, as they can provide long-term shelter for your income and investment gains. Our financial advisors and Certified Financial PlannersTM will help you determine what types of retirement accounts are best for you based on your unique circumstances.

In some cases, tax-deferred accounts such as traditional IRAs and 401(k)s, where contributions are made pre-tax, may be most appropriate. Or it might make more sense to utilize post-tax contributions to Roth IRAs and Roth 401(k)s. Our experts will advise you on the most appropriate retirement account types when building out your comprehensive financial plan and tax strategy.



Estate Tax Strategy

Protect your wealth from posthumous taxation.

Estate tax regulations are dynamic and subject to political shifts. Even if you're currently beyond the estate tax threshold, future alterations could impact your legacy. We'll assist you in securing your assets and investments for future generations.

Our estate planning services, sometimes in coordination with your estate attorney, encompass trust and will establishment, charitable giving, gifting, marital deductions, and beneficiary designations.



Charitable Giving

Support your cherished causes.

Contributing to charities not only supports causes close to your heart but also lowers your taxable income. Our advisors collaborate with you to identify the most effective methods for charitable giving, which may involve direct donations, donor-advised funds, IRA-required minimum distributions, and more.



Tax Projections

We can’t predict the future, but we can plan for different outcomes.

Today’s tax deferral decisions could be a good idea (if taxes will be higher later) or a terrible idea (if taxes will be lower). Tax projections are not an exact science, but it’s still a worthwhile endeavor to try and mitigate the negative impact taxes can have as much as possible.

Using our financial planning and analysis software to make educated tax projections, a clearer picture emerges providing a framework for today’s decisions. Our advisors will ensure your plan incorporates many possible outcomes, so you won’t be caught flat-footed when it comes to taxes.

Tax Planning and Strategies

Tax-Efficient Portfolios

Tax-Managed Portfolios

Low Portfolio Turnover

Tax-Loss Harvesting

Net Unrealized Appreciation

Estimated Capital Gains

Roth Conversions

Tax Return Analysis and Review

Income Tax Projections

Portfolio Distribution Strategies

Charitable Giving

Social Security Optimization

Stock Option / RSU Analysis

CPA Collaboration

Join us at Vitality Wealth Advisors and let's embark on a journey of financial empowerment and fulfillment together. Your dreams are our mission, and your prosperity is our purpose.