Financial Advisor Bend Oregon

Tax Planning

Is your investment strategy “tax efficient”?

The returns that matter are the returns you get to keep. Tax-efficient investing helps to maximize returns over the long term.

Every investor needs to consider taxes.

If your current investment strategy is focused solely on returns, then you’re missing a major opportunity.

Smart tax planning recognizes that it’s not just about what you make…it’s about how much you keep. By finding opportunities to defer and reduce your tax burden, you can keep more of your money working for you and build more wealth over time.

Every investment move should be evaluated for tax risk. Shifting assets to more liquid accounts, active trading, or rebalancing your portfolio can incur short or long-term capital gains. A lifetime of investment decisions—and their tax implications—can have a powerful cumulative effect on your returns. Morningstar has shown that the long-term impact of taxes on returns over a 40-year period, which cost a hypothetical investor almost $1M.

Not every financial advisor brings a tax perspective. That’s why it’s important to choose a professional that understands and incorporates tax planning as part of a larger investment strategy.

Every dollar you pay in taxes is a dollar that’s no longer invested.

Our savvy wealth planners know that how you invest and when you invest have implications on tax day. Based on your unique situation, we can help you avoid tax drag by taking advantage of opportunities like strategic loss reporting, tax-deferred accounts (like 401ks and IRAs), charity donations, and tax-advantaged plans (like ROTH IRAs and 529 education plans).

Tax planning can also support your charitable giving and estate planning. If you plan to bequeath assets to your heirs or make a donation to a charitable organization, a tax-informed strategy ensures you and your beneficiaries will reap the greatest benefit.

We can also employ a strategy of tax diversification—spreading your investments across accounts with different tax treatments. Tax diversification is especially beneficial when you retire and start receiving disbursements. Diversifying your investment holdings by tax treatment can also help you manage your tax bracket more effectively by pulling cash from different accounts based on their tax implications.

At Ascent, we work with you to develop a holistic investment strategy that aligns with your goals, values, timeline, and tolerance for risk. As part of that strategy, tax planning is an important tool to help you gain more ground.

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