Protecting Income by Minimizing your Tax Burden!
Do you receive a 1099 INT/DIV annual statement from your bank or financial institution? Are the interest and earnings costing you an arm and a leg in taxes every year? Many of us choose to save and invest in vehicles such as CD’s, money market and savings accounts, and short-term trades of stocks and mutual funds. These products have varying degrees of risk and potential, but they share one common characteristic: They all can create annual taxable earnings.
We need to fully consider the role taxes play in measuring the effectiveness of growing our money in an asset that is taxed every year on the growth of the account.
Three Questions to Ask:
- What is your current strategy costing you in taxes?
- If your account grows, can your cash flow cover the annual taxes?
- What is the opportunity cost (what those tax dollars could have earned in interest/dividends had they not been paid in taxes to the IRS)?
What are some solutions to the problem?
At Maga Financial Associates, we offer several proven strategies to help minimize your current and future tax liabilities. Call us today at 847-920-9680 to set up a free, no-obligation personal consultation and financial analysis.