ISAKOV Planning Group Blog
Thursday, January 02 2020
Review Your 2019 Income and Tax Obligations Now!
You work hard to put away as much money as possible for your retirement, a child’s education, or other long-term goals. But taxes can eat away at those savings, right away, in the future, or even both! Tax planning is essential to keep more of what you earned and saved. And that means looking at your 2019 income before the end of the year and calculating what your tax obligation will be now. This way, you can plan to be more efficient in 2020 and beyond, creating a strategy that you can benefit from for many years.
A Common Tax Planning Mistake: Don’t Rely on Your Accountant
Many professionals, business owners, and real-estate investors learned this lesson long ago: If they wanted to optimally retain the money they earned, they needed to heed the expert advice of financial planners.
A mistake in planning for taxes could prevent businessmen and investors from being able to reinvest, adding to their accumulated wealth, and saving for the future. One common error is to rely on their accounting professionals for tax advice. This may suffice for businesspersons with great understanding of the tax code and knowledge of how it applies to their field of business or investing. However, unless the accounting group has a good deal of experience in their specific field, they could be led astray. A critical mistake in tax planning could mean you pay the US government much more than you should, setting back your financial plan a number of years.
The average investor may not understand the benefits of reinvesting or converting from a standard IRA to a Roth IRA. Any accountant can advise you to reduce your tax liability by contributing to an IRA, but that person may not be a registered investment adviser—and able to counsel you regarding the type of IRA investment that makes the most sense.
A Financial Adviser Is Your Tax Planning Resource
A financial adviser is better trained and equipped to assist with your tax planning. The reason is that financial and investment advice must consider tax implications of virtually any monetary decision. In other words, we’re talking about going beyond recommending expense deductions: Financial planners provide comprehensive tax planning strategies! This invaluable advice will help keep your taxes low into the future and address any changes in the tax law that can alter your savings strategy. Your tax advice and financial advice should go hand in hand.
Learn how a retirement savings account can be an asset to reduce taxes by $5,000, $18,000, or even $52,000. But to gain these tax advantages, contact Isakov Planning Group before December 31st. There is still time to review your financial and tax planning status and provide options to keep more of your earnings today and into the future.
Contact us today!