Investing and Taxes

Investing and taxes go hand in hand.  Although tax implications cannot be the sole reason for choosing an investment or an account type, they should never be ignored.  Investing wisely when it comes to taxes is a vital objective to being successful financially.  We all have a duty to our country and state to pay taxes as we are legally obligated.  However, that doesn't mean we should pay more.   

When it comes to choosing investment directions, there is one important tax fact to remember;  almost every dollar we earn will be taxed at some point in our lives, for the most part.  The beauty of wise investing is we can decide whether to pay the taxes now, or pay them when we retire (tax deferral).  Many different types of accounts create tax deferral, including 401(k) plans, 403(b) plans, IRA's (except ROTH), and others (many of which you can read about on this site).

These are the reasons why we like to look at a client's tax return before giving investment advice.  We want to know how their investment choices are going to effect their tax liability now, and in the future.  This is also why we offer discount tax prepartation to our clients, to assure we know the implications of their taxes and to assess their situation as it changes.       

At Bongiovanni Insurance & Financial, we believe in the importance of taxes when it comes to investing.  We can help you understand the chioces you are making, and make you feel comfortable that they are suitable for your future.  Call today (203) 237-7900.

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