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Proactive Tax Planning - Because Taxes Matter Thumbnail

Proactive Tax Planning - Because Taxes Matter


Recently, taxes have been a hot topic in the news. From capital gains to inheritance taxes the uncertainty of what is to come may impact the future of your investment strategy.

The administration has proposed raising the top rate on long-term capital gains to 39.6% from 20% on households making more than $1 million. These higher taxes would apply to taxable brokerage accounts, but not to tax-deferred accounts, which include 401(k) plans. Higher-income investors may find ways to manage the taxes owned, including making deductible charitable donations and weighing tax-managed investment strategies to minimize capital gain distributions.

In addition, the administration is proposing a 3.8% Medicare tax on those who earn more than $400,000.

Another proposal being considered on wealthy families is a combined tax rate of as much as 61% on inherited wealth. The plan proposes to nearly double the top tax rate on capital gains and eliminates a tax benefit on appreciated assets known as the "step-up in basis." This combined tax rate would be the highest in nearly a century, according to the tax policy research group.

Now, more than ever, it's important to have a team of professionals to guide you through the ever-changing landscape of taxes.

At Prestige, we have in-house tax professionals working alongside our Wealth Advisors and Senior Portfolio Manager to provide guidance on how best to mitigate your tax consequences, no matter what the outcome will be from the administration.


We would always like our clients to maximize their wealth and best navigate their circumstances, so our goal is to stay knowledgeable about Proactive Tax Planning and to try to offer our clients our best ideas. Tax rules and laws have a long history of changing. We believe a proactive approach to tax planning could yield better results than a reactive one. For example, one of our primary objectives is to work with clients to explore efficient ways to draw down retirement savings and transfer wealth.  We try to look at your financial picture from a comprehensive lens which allows us to recommend the best way to set up, manage, and distribute your wealth. When it comes to tax efficiency, we try to focus on not just what you make, but what you keep. To discuss how tax planning can affect your investments, bring it up at our next meeting or call our office.


Schedule your Complimentary Consultation today to see how you can improve your tax situation. Please call, Cherie Andre at 908-583-8603 to assist you or click the button below to meet with an advisor.

This article is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer, tax or financial professional. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.