2021 Saving Strategies
Go beyond maxing out your employee 401(k) to find the opportunities that could save you your hard-earned cash when it comes to paying taxes.

  • Minimize the use of Active Management for Brokerage Accounts. The more you trade, the more you’ll be taxed. Realized gains in a brokerage account get taxed when they get reported, which happens whenever a trade takes place. Actively managed brokerage accounts tend to trade frequently.
  • Minimize the Use of Taxable Bonds. Like equities, taxable bonds produce capital gains every time the fund manager buys or sells securities. You may also have to pay taxes on your gains when you sell your shares in the bond.
  • Send Your RMDs to Charity. If you don’t need your Required Minimum Distributions from your retirement accounts because you have enough income from other sources, this burdensome requirement does little but elevate your tax bill. Instead avoid this by using a Qualified Charitable Distribution which counts as your RMD, up to $100,000.
  • Cultivate Tax Losses to Offset Gains During the Same Year. Tax cultivation means, in a nutshell, the process of balancing realized gains with losses that occur in the same year. Use your losses to reduce the taxes you owe on the gains. By effectively managing your gains and losses, you can reduce the taxes you owe.

Tax laws are tricky and not something you want to test the IRS on, so sound advice is a safe necessity for all high-net-worth earners. Give us a call today at 518.581.1642 so we can talk through strategies that might be beneficial to you when tax season hits.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

Adapted from: https://pillarwm.com/7-little-known-high-net-worth-tax-strategies-to-save-big-money

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