“There are two guarantees in life – death and taxes”.
– Benjamin Franklin
The quote is simple, irrefutable and profound. Understanding the complex tax code is vital to your financial success and is a key component of the financial planning process. Every year the complexity of the tax code increases therefore your potential benefit decreases.
The political and economic issues of the day will ultimately lead to a changing tax environment including; A worsening budget deficit and aging population create considerable uncertainty about tax policy beyond 2012. Several important tax provisions expired at the end of 2011. New taxes will be levied as a result of healthcare reform. Major tax legislation is unlikely to be enacted before November elections, and taxes for many investors could dramatically increase in 2013.
Investors concerned about higher taxes have a number of tax-smart strategies at their disposal. At 3 Rivers Wealth Management Group we work in conjunction with your CPA on these proactive tax planning strategies. Tax preparation is nothing other than “documenting history.” Tax planning is where the real money is saved. If you don’t want to pay more than your fair share of taxes we encourage you to contact your 3 Rivers Wealth Management Advisor to see how we can help you proactively plan to reduce next year’s tax liability and beyond.