610.353.7777
24 S. Newtown Street Road
Newtown Square, Pa 19073
24 S. Newtown Street Road
Newtown Square, Pa 19073
CONTACT US
Please be aware that we have moved our scheduling platform to Calendly. Use the above link to schedule time with us. We're looking forward to working with you!
TAX & FINANCIAL PLANNING
Does your current advisor consult with your tax advisor? Why not? We are tax experts. We are investment experts.
Tax planning is an integral part of meeting your financial goals. A lot of investment advisors don't understand taxes. We are experts in taxes and investments. This is the reason we started MC2 Financial Advisers, Inc. We recognized an opportunity to get more involved in helping our clients achieve their financial goals. We approach each client's situation with a 360⁰ degree, 30,000 foot view. That means our goal is to be your primary financial advisor, and integrate all the facets that make up our financial lives.
Here are a few ways we've helped clients.
Have you ever heard an investment professional use the term "bite the bullet"?
If you ever hear an agent or advisor say, "bite the bullet", in reference to a taxable sale or exchange of an investment, you should seek a second opinion. Advisors should never downplay taxes. For example, a client approached us after years of working with a commission-based advisor. They owned some annuities, but most of their wealth was in mutual funds. Over time, their funds were neglected and had gone out of balance, skewing heavily toward stocks. They met with us to discuss potential taxes that would result from rebalancing. We were able to avoid taxes altogether by suggesting they rebalance within the annuities. Buying and selling inside an annuity is not a taxable event. Investors should strive to keep bonds inside tax sheltered accounts, such as IRAs and annuities, and hold stocks outside, in taxable accounts. This technique preserves the lower capital gains tax rates on dividends and long-term capital gains derived from most stocks. Keep in mind that every dollar that eventually comes out of an IRA or annuity is taxable at ordinary income tax rates, which can be as much as 39.6%.
Are you getting any benefit owning tax-free bonds?
Many years ago, we were preparing a client's tax return. The client was retired and didn't have a lot of taxable income. They owned tax-free bonds recommended to them by their investment advisor. Tax-free bonds typically yield lower rates than taxable bonds. In effect, the client was earning less on their investments, and not even receiving a trade-off in a tax benefit. We brought this to the attention of the client, and their advisor moved them out of tax-free bonds without a question. We understand this scenario doesn't fit all situations. It's an example of how we look out for clients.
Are you missing opportunities to make tax-free withdrawals from your IRA?
If you have significant itemized deductions that exceed your taxable income, we may recommend you draw more from your IRA, or perhaps convert those distributions to Roth IRA.
Tax planning is an integral part of meeting your financial goals. A lot of investment advisors don't understand taxes. We are experts in taxes and investments. This is the reason we started MC2 Financial Advisers, Inc. We recognized an opportunity to get more involved in helping our clients achieve their financial goals. We approach each client's situation with a 360⁰ degree, 30,000 foot view. That means our goal is to be your primary financial advisor, and integrate all the facets that make up our financial lives.
Here are a few ways we've helped clients.
Have you ever heard an investment professional use the term "bite the bullet"?
If you ever hear an agent or advisor say, "bite the bullet", in reference to a taxable sale or exchange of an investment, you should seek a second opinion. Advisors should never downplay taxes. For example, a client approached us after years of working with a commission-based advisor. They owned some annuities, but most of their wealth was in mutual funds. Over time, their funds were neglected and had gone out of balance, skewing heavily toward stocks. They met with us to discuss potential taxes that would result from rebalancing. We were able to avoid taxes altogether by suggesting they rebalance within the annuities. Buying and selling inside an annuity is not a taxable event. Investors should strive to keep bonds inside tax sheltered accounts, such as IRAs and annuities, and hold stocks outside, in taxable accounts. This technique preserves the lower capital gains tax rates on dividends and long-term capital gains derived from most stocks. Keep in mind that every dollar that eventually comes out of an IRA or annuity is taxable at ordinary income tax rates, which can be as much as 39.6%.
Are you getting any benefit owning tax-free bonds?
Many years ago, we were preparing a client's tax return. The client was retired and didn't have a lot of taxable income. They owned tax-free bonds recommended to them by their investment advisor. Tax-free bonds typically yield lower rates than taxable bonds. In effect, the client was earning less on their investments, and not even receiving a trade-off in a tax benefit. We brought this to the attention of the client, and their advisor moved them out of tax-free bonds without a question. We understand this scenario doesn't fit all situations. It's an example of how we look out for clients.
Are you missing opportunities to make tax-free withdrawals from your IRA?
If you have significant itemized deductions that exceed your taxable income, we may recommend you draw more from your IRA, or perhaps convert those distributions to Roth IRA.
