A critical component to complete wealth management is to understand the complexities of ever-evolving tax legislation. As your true financial partner, we understand these intricate issues and we take them seriously.
There are many situations to consider when making decisions regarding an approach to your individual financial planning and tax planning strategies. Some key considerations include:
The importance of knowing your tax cost basis prior
to making any sells in your account
How tax law changes can affect you, including but not limited to:
- The Opportunity cost of executing on certain tax
strategies and plans
- The Time Value of Money and how future inflation can affect decisions made today
- The likelihood that you may be in a lower or higher tax bracket later in life
- The possibility of tax basis step-up if an equity is never sold
At Signet Financial Management, we consider these and many more potential tax-related matters before making any changes to your portfolio. In fact, we evaluate each and every position in your portfolio prior to making any decisions on sells or purchases, in seeking to ensure that you are not hit with a tax bill that you don't expect at the end of the year.
As always, it is important to consider your personal financial planning strategies and goals before making any decisions regarding how the aforementioned, or any other considerations, may affect your tax situation.