Apex News

August 30, 2021

Planning (verb): To Arrange A Method Or Scheme Beforehand 

Taxes well planned. Planning for taxes. Taxes-Well-Planned. Some things are worth repeating! Your mind isn't playing tricks on you; Apex can help you plan for your taxes, and we feel strongly that this is one of our most valuable differentiators. Whether through an asset under management model or financial planning-only engagement, tax planning is one of the first steps in our financial planning process. Utilizing our proprietary tax software, we can work with clients to project their tax liability as far as three years into the future.

"Time is an illusion, timing is an art." Stefan Emunds

Following up on our last blog posts, the second most commonly asked question we get is, "Do you know of a good CPA that can help me reduce my tax liability?" We work with some fantastic CPAs and are happy to refer our clients, but actual tax planning happens before you celebrate New Year's Eve and undoubtedly well before you turn over all of your paperwork for the April 15th deadline. Tax planning involves timing and is paramount to achieving both your short and long-term financial success. 

The art of tax planning is analyzing and arranging a person's financial situation to maximize tax breaks and minimize liabilities legally and efficiently. Some may be overwhelmed by the 2600 pages (and growing) in the tax code, but it simply comes down to the what, where, and when. Collectively, our advisors have over 100 years of experience in analyzing these interrogative pronouns and utilize this knowledge in a team approach. The first thing our team will look at is your previous tax returns. We will craft our questions, cross-reference our findings to the other financial information we gathered from you, and meet with you to devise a personalized plan to enact.

"Tax" Is Not A Four Letter Word

On average, Americans pay roughly 30% of their income to local, state, and federal taxes and are therefore likely to be one of the most significant expense categories in your budget. And to add to the complexity, these savings are an ever-moving target with personal and legislative changes. The good news is that there are ways in which you can reduce your tax liability, but in other, more pressing news, you have to plan to achieve these savings.

We want to reframe our clients' thoughts about taxes and embrace the shell game of utilizing various tax mitigation strategies. Through the planning process, we will help you understand the what, where and why behind:

• Income
• Employee Stock Options + RSUs
• Tax Rates
• Tax-Advantaged Accounts
• Pre + Post Tax Deductions
• Tax Credits 
• Estate Planning + Trusts

Prospective clients often experience trepidation when sharing their numbers with us. We encourage you to leave this fear at the door because to us, it's all about numbers, and we LOVE numbers. Do you know what we even love more than numbers? It is helping you keep more of them in your bank account. Often when you experience fear, it's simply a gentle nudge from your intuition that it's something that you need to address. We want to help you turn that fear (an actual four-letter word) into knowledge and embrace all of the tax advantages you have at your disposal. Because after all is said and done, it's not about how much you make but how much you get to keep that matters. 

The Apex Promise

What's the old saying, "there are only two guarantees in life - death and taxes." While the SEC prohibits us from utilizing past investment performance to indicate future returns, we find that our tax planning nearly ensures tax savings for every client. As everyone is required to file taxes, everyone can benefit from tax planning regardless of the level of complexity. Our commitment to our clients is to achieve maximum tax efficiency and seek ways to influence your wallet positively and, thereby, your life. 

So what's your tax strategy? What tax mitigation solutions do you have in your arsenal?

Disclaimer: Actual photo of trophy asset owned by select clients and principals of Apex Financial Advisors, Inc. This is neither an offer to sell, nor a solicitation to buy securities, nor an invitation to subscribe to specific services. This overview is for informational purposes only, and nothing contained herein shall be construed as investment advice.