You may have heard murmurs of a proposed tax hike and the knee-jerk reaction to news of an increased tax rate is 'what can I do to avoid these taxes?' But, this can actually detrimental to long-term financial success.
It's no surprise to anyone that taxes are here to stay, and the general public loves to complain about them. But, they are a cost of doing business and they pay for common resources & public services that we enjoy as residents of our state and country.
The fact remains, taxes are going to go up. We have had 4 straight administrations spending money, from the war in Iraq to TARP, to COVID spending, to the proposed infrastructure bill. The cost for these things can only be kicked down the road for so long. Planning for increased taxes in the future is prudent and could end up saving you money.
Higher taxes are out of your control, so what do you do? You plan for what you can control. Which is how to navigate the new tax laws and maximize your financial independence in the future. If you plan for it now you can survive it and actually thrive, no matter what the tax rate is.
How do you plan? First, you have to understand your tax bracket and how you can maximize taxable cash today, for tax-efficient dollars tomorrow. Know which tools are best used in your situation and how to push the boundaries of your own tax bracket. Then, you have to watch out for mistakes that could push your tax bracket up or put your cash in jeopardy. If you have questions about tax rates, tax brackets, or tax efficiencies or please reach out, we are happy to help you navigate this topic!