Tax Considerations

Not everyone is confident that the global financial crisis is over.  Many are concerned about the possibility of increased taxes on middle and upper-class workers. There are very few opportunities left for reducing taxes. And for that matter, maybe we're better off paying taxes at today's rate, and getting the money out tax free in the future. The only thing we know for sure: No one knows.

And so Oughtness Group practices defensive planning. We consider current tax rates, and in consultation with our clients, develop a strategy to cover a multitude of scenarios, knowing that we'll need a variety of "buckets" from which we can draw retirement money. When taxes are low, we take money like IRA's that will be taxed at withdrawal. When income taxes are high, capital gains may be lower, and we may sell investments with large capital gains. When all taxes are high, we may liquidate Roth IRA balances or borrow from life insurance.

We also consider the effects of a change in estate tax rates and calculations. Although the Federal Estate Tax currently has a very high threshhold before taxation, it will be good to know of changes that can affect you

If your eyes glaze over at the thought of this discussion, you need the Oughtness Group more than ever. We work with your legal and tax advisors as a co-ordinator, to make sure your goals stay within reach.