Do you often get confused with ‘tax-planning’? Don’t be as it is a very easy concept, all you need to do is understand its significance in your life and go for a proper tax-planning. Well tax-planning helps you to smartly invest in savings with the purpose of achieving the business goals. Whether your investment objective is to preserve your wealth, provide an income or generate capital growth, for the most effective results you need to protect your capital and income from being eroded by taxation. Many investors pay more tax than strictly necessary because they have not structured their investable assets in the most tax efficient way.
MoneyMindz, Best Oncall Financial Advisory Portal believes that tax planning is a fundamental part of investment planning and your general wealth management. At the end of the day what matters is after tax returns. You should not tackle investment planning without tax planning or tax planning without investment planning. The two are inextricably linked and your adviser should provide both investment and tax expertise.
Let us have a glimpse of various benefits to strategic tax-planning:
1. It can reduce income and capital gains tax on your savings, investments and pensions. Many people pay more tax than necessary, such as income tax on bank interest they are not even withdrawing and capital gains tax when switching between investments.
2. The less tax you pay, the more you have to spend or save for your future or to leave to your heirs. You may be able to lower the inheritance tax liability for your heirs.
3. Tax planning may also make life easier for your heirs. Many of the investment arrangements we recommend to our clients allow you to fill in a beneficiary nomination form so your assets should pass directly to your chosen beneficiaries without the need to go through probate.
4. There have been many changes in the laws governing estate taxes in recent years, which means it can be hard to predict who will be subject to them down the road. Proper estate planning can help lower estate taxes and accomplish a range of other goals. Your CPA can offer more details on the best ways to provide for your family’s future.
How are tax planning and financial planning connected?
Financial planning is the art of implementing strategies that help you reach your financial goals, be they short-term or long-term. That sounds pretty simple. However, if the actual execution was simple, there would be a lot more rich folks.
Tax planning and financial planning are closely linked, because taxes are such a large expense item as you go through life. If you become really successful, taxes will probably be your single biggest expense over the long haul.
So planning to reduce taxes is a critically important piece of the overall financial planning.
Tax planning is the art of arranging your affairs in ways that postpone or avoid taxes. By employing effective tax planning strategies, you can have more money to save and invest or more money to spend. Or both. Your choice. Kuber Mindz, your Friendly Financial Adviser puts an effort to make you understand the importance of tax-planning in your life. Along with tax planning, tax saving is important too.
For more information visit www.moneymindz.com or give a missed call to 022-62116588.