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5 Missed Opportunities When Tax and Wealth Aren’t Aligned

When tax planning isn’t integrated into wealth management and estate planning, problems can arise. Unfortunately, many firms don’t review tax returns or give tax reduction tips, which could result in ambiguity for investors as they might receive mixed or conflicting advice from separate advisors. Without these very important pieces being considered through a holistic perspective, you might end up paying more than you intended in taxes while losing out on financial growth opportunities. As part of a comprehensive financial wealth building strategy, investors should consider the implications of tax planning. Below are five opportunities that may be missed when tax and wealth planning aren’t aligned.

1. Maximizing Your Financial Wealth

Whether you’re planning for short- or long-term goals, keeping tax considerations in mind throughout your financial strategy is crucial. Without integration of wealth and tax, you could be paying unnecessary taxes and miss out on opportunities for potential tax savings, which means you could be reducing your overall wealth unknowingly. Chatterton & Associates helps ensure that tax planning is considered with retirement and estate planning, so that your financial wellbeing is at its best. 

Read: 3 Ways Tax Projections Can Help You Grow Your Wealth

2. Safeguarding Your Financial Goals

If your financial and/or tax professional can’t see your entire financial plan and collaborate on strategies that make the best sense for your personal financial situation, there is more of a chance that you might not be receiving helpful information as you work to achieve your financial goals, whether that’s saving for retirement, financially planning for the next generation, or growing your business

Having the benefit of two sets of eyes—the financial planner and the tax professional—looking for and strategizing about tax opportunities from last year, the present tax year, and future tax years will allow you to better prepare your financial future.

3. Timing of Your Investments

Investment opportunities that do not consider the timing of tax implications could end up resulting in the loss of your time and money, such as unnecessary capital gains taxes or missed opportunities to reduce taxes through gifting strategies like charitable donations

When you’re considering new investments or selling existing investments, wanting to reallocate all or some of your portfolio, or switching your time horizons, it is best to speak with your financial and tax professionals to make sure you’re making choices that will allow you to stick to your financial goals.

4. Estate Planning Transitions

When tax and wealth services are separated, it can lead to inefficient estate planning, which can cause complications and confusion for you and your loved ones. By factoring in wealth and tax considerations as you plan your estate, you can potentially save on estate taxes and set up the smooth transfer of wealth for your beneficiaries. 

Whether you want to preserve your assets in a business entity, need a revocable living trust or special needs trust, want to project possible tax rates for your beneficiary upon inheritance, or are looking for other opportunities to help maintain your legacy, integrating these services can bring peace of mind.

5. Tax Credits and Deductions Opportunities

Failing to coordinate tax and wealth services may lead to missing out on valuable tax credits and deductions that can help you grow financially, either as an individual or as a business owner. In either case, planning and projection can help successfully and legally reduce your tax liability. The lack of knowledge or communication between professionals can result in potential losses or overpayments.

Align Your Tax and Wealth Goals with Chatterton & Associates

Chatterton & Associates combines wealth, tax and estate advice, assisting you in crucial areas of financial wellbeing. Through this collaboration, you’ll be able to gain a better understanding of your financial situation and receive holistic perspectives to help you figure out how to achieve your goals. Contact us today to discuss your financial strategy.


The Team at Chatterton & Associates

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