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11. |
Investigate
Tax-Free Munis |
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Through
diversification, some choose to purchase tax-exempt "IOU's"
known as Municipal Bonds.
Issued
by public agencies, municipal bonds have substantially reduced risk,
do not incur annual taxation, and are usually not subject to market
fluctuation.
A
SaveWealth
Advisor can provide more information about tax-advantaged municipal
bonds.
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12. |
Don't
Forget T-Notes |
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When
diversifying, some choose to take advantage of U.S. Treasury Obligations.
These notes come with the full backing of the U.S. Government. T-Notes
also offer state and local tax exemptions.
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13. |
Reduce
Taxes When Selling Stock |
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If
you're in the highest tax bracket, and depending on your age and
risk tolerance, avoid "quick sales" when selling stock.
Holding stock for at least 12 months will qualify you for the reduced
capital gains tax.
It's
much better to pay 20% capital gains taxes than 38.6% income taxes
when you wish to redeem your stock certficates.
Check
with your financial
advisor to make sure growth stocks are appropriate for your
own portfolio before investing.
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14. |
Tax-Deferred
Annuities |
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Tax-deferred
annuities are retirement alternatives completely avoid probate
delays and expenses. Annuity prices and values vary with the market,
and there are sometimes penalties for early withdrawal.
Annuities
do not have taxes on earnings taken out annually. Instead, money
you would have otherwise paid in taxes remains in the annuity each
year. Taxes are paid when you choose to withdraw your money. But
for the entire time you hold that contract, that tax money is earning
interest for you.
Annuities
also come in many varieties. Some offer fixed rates of return, while
others fluctuation based on market
conditions. Other annuities, called variable annuities, allow
you to invest in sub-accounts (also called variable accounts) that
are managed by professional money managers.
Check
with a SaveWealth Advisor,
who can provide you with a free special report on annuities.
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15. |
Modified
Endowments |
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Modified Endowment Contracts are
special contracts, issued by insurers, that combine the benefits
of tax-deferred annuities with a death benefit feature.
Not
only can you put tax money to work for you, but these contracts
can also be combined with advanced estate planning strategies, including
dynasty
trusts.
To
learn more about MECs, please click here.
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Capital Gains |
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Mortgage and Equity |
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Education Tax Breaks |
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Gifting Options |
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Sheltering Rental Income |
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Using Your Unified Credit |
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Social Security |
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Tax-Free Munis |
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Estate Tax Reductions |
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Life Insurance |
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IRAs and 401k Plans |
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And much more |
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