The Benefits of a Tax-Focused Financial Plan
What is a Tax-Focused Financial Plan?
A tax-focused financial plan is the cornerstone of any successful business. It helps you make decisions about how to invest and grow your capital, pay for taxes, and save for retirement. The most important benefit of a tax-focused financial plan is that it reduces your overall tax burden by ensuring that everything you do is strategic and legally compliant.
The Importance of a Tax-Focused Financial Plan
A tax-focused financial plan can be very useful for business owners and retirees, but it’s also important for estate planning, wealth transfer and business succession. Tax planning can help ensure a smooth transition of wealth between generations, help you maximize your investments and minimize your tax burden on a business that you want to exit while minimizing your exposure to capital gains taxes.
If you’re thinking about starting a family or expanding an existing one, it’s never too early to start planning for the future! A good way to start with our kids’ education is through 529 plans (also known as Qualified Tuition Programs). Or maybe you want to start that business you’ve dreamt of opening.A business plan that looks at optimizing revenue and profitability can help you get started and provide a roadmap for your future success. Check out our Business Tax Planning page to learn more about the services New Century Investements can offer.
Tax and financial planning with a focus on small businesses and retirement
Tax planning is a critical component of any financial plan and can help you avoid the costly consequences of non-compliance. Identifying the right business entity, determining effective ownership structures to achieve business and financial objectives, and structuring retirement income sources are important factors to consider in tax planning.
Taxes can be deferred or reduced by shifting income from higher to lower tax brackets through proper timing of income sources and distributions. If you have investments outside of your employer’s retirement plan, it may make sense for you to defer taking distributions until after you have retired (or at least until your investments become more liquid).
The Benefits of Working with a Tax-Focused Financial Planner
When it comes to financial planning, there are many benefits to working with a team that includes both CPAs and CFP® professionals. This combination of skills and experience can provide a more comprehensive approach to your taxes and overall financial well-being.
Some of the benefits of working with a tax-focused financial planner include:
A More Comprehensive Approach:
As mentioned, one of the benefits of working with a tax-focused financial planner is that you’ll receive a more comprehensive approach to your taxes and overall financial well-being. This is because CPAs and CFP® professionals have different but complementary skill sets.
For example, CPAs are typically more focused on the tax implications of financial decisions, while CFP® professionals are more focused on the overall financial planning process. By working with both types of professionals, you can be sure that all aspects of your taxes and financial planning are being considered.
More Tax Savings:
Another benefit of working with a tax-focused financial planner is that you may be able to save more money on your taxes. This is because CPAs are typically up-to-date on the latest tax laws and can help you take advantage of any deductions or credits that you may be eligible for.
In addition, CFP® professionals can help you create a financial plan that includes strategies for minimizing your tax liability. By working with a tax-focused financial planner, you can be sure that you’re taking full advantage of all the tax savings opportunities available to you.
Peace of Mind:
Finally, working with a tax-focused financial planner can give you peace of mind. This is because you’ll know that your taxes and financial planning are being handled by professionals who are knowledgeable and experienced in both areas.
You can rest assured that your taxes are being prepared correctly and that your financial plan is on track. This peace of mind is invaluable, especially during tax season.
If you’re looking for a more comprehensive approach to your taxes and financial planning, consider working with a tax-focused financial planner like New Century Investments. The benefits of working with such a professional can be significant, and you’re sure to appreciate the peace of mind that comes with knowing your taxes and finances are in good hands.
Tax-focused financial planning is an essential part of any successful financial plan. The right strategies can help you save thousands in taxes and have a more comfortable retirement. With our experience working with small businesses and retirees, we can provide tax-focused financial planning that caters to your unique needs.
Take the Next Step
Tax-focused financial planning offers many benefits for entrepreneurs and executives. It can save you money on taxes, help you avoid costly mistakes, and free up time for other things. If you’re not currently working with a tax-focused financial planner, now is the time to do so! We have experienced CPA and CFP® professionals who can provide you with the holistic financial planning services you need. We offer investment management, tax planning, financial planning, retirement planning estate planning, and more. Contact us today or check out our Business Tax Planning page to learn more about how we can help you achieve your financial goals!
Matt Ward, CFP®
Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.
Matt graduated from Texas Tech University with a bachelor’s degree and is a certified financial planner™ and chartered retirement planning counselor℠ professional. When he’s not working, you can find Matt hiking, playing the guitar, and spending time with his family. To learn more about Matt, connect with us today!