Typical Client Situation
A successful married couple frequently complained about taxes they had to pay to the IRS. To learn if the annual tax bill could be reduced, they contacted planners at Ankerstar Wealth for advice.
| Bob | Jane | |
| Age | 53 | 48 |
| Salary | $120,000 per year | $30,000 per year |
| House | $800,000 with $420,000 mortgage | |
| Taxable Account | $15,000 | $25,000 |
| Retirement Acct | $440,000 | $180,000 |
| Health | Good health | |
| Children | Chloe age 7, Isabel 3 and Oliver age 10 | |
| Insurance | Adequate life insurance | |
How We Can Help
We can review the couple’s most current tax return to reveal how much taxable income is being generated from investments.
- The planners can discover interest that was taxed as ordinary income and suggest investing in municipal bonds, which incur no federal tax on interest.
- The planners can also uncover additional taxes because capital gains derived on an annual basis from mutual fund distribution. Then planners can apply the best use of monies concept for their investment allocation and considering the new income tax law, the planners can suggest tax-efficient investment strategies to help minimize taxes from capital gain distributions on an ongoing basis.
The next step will be to review the couple’s work benefits to make sure both individuals are capitalizing on all available tax-advantaged investments accounts, such as 401ks, HSAs, and IRAs (both Traditional and Roth).
This planning can help to minimize the couple’s tax liability and offer a more tax-efficient investment strategy.
