So what can a tax guy do that your broker isn’t doing?
Tax-efficient income planning
Take a look at your most recent tax return. Did you have additional dividend and capital gains income that added to your adjusted gross income? Did you need that extra income, or would it have made more sense to defer that income until it was needed? The way your retirement assets are invested could have an impact on the amount of tax you are paying. A tax professional can review your tax return along with your brokerage statements to identify those inefficiencies and recommend solutions.
Do you have a retirement income plan? Montini & Farrah Tax Advisory Group can create an income plan for you that will include a corresponding tax plan. Click here to learn more.
Find the hidden fees
Hidden brokerage fees could likely be dragging down your earnings. Unfortunately, most people don’t know how to find them. A tax professional can help you read your brokerage statements and identify where fees could be hidden. For example, what is the expense ratio on the mutual fund your broker put you into? What are the 12-b-1 fees? Your variable annuity has an M/E expense. How much is it and how is that affecting performance? A tax professional can work with you to help reduce the fees you are paying.
Social Security and Medicare Planning
Social Security is the foundation of your retirement income. Unfortunately, navigating social security can be complex. Understanding spousal benefits, ex-spouse benefits, and the ramifications of working and collecting benefits are some of the most common questions we see. Additionally, Medicare costs and plan options can also add to the confusion. Social Security and Medicare both are significant parts of a retiree’s tax return. It is the tax professional’s responsibility to both understand how retirement income can affect Social Security and Medicare, and to advise on how to reduce the amount of tax paid while keeping Medicare costs as low as possible.
Get yourself a second opinion. Montini & Farrah Tax Advisory brings tax and retirement planning together under one roof. Schedule a no-cost consultation and let our accounting staff and licensed fiduciary review your brokerage statement and tax return to see if there is room for improvement. Click here to schedule your appointment.
Written by Marc Montini, Investment Advisor Representative, and Managing Partner for Montini & Farrah Tax Advisory Group, serving Phoenix, Scottsdale and surrounding communities.