At Truly Aligned: A Wealth Management Firm, we provide a fresh and holistic approach to wealth management. While many wealth managers and advisors focus mainly on investments, our wealth management services encompass every area of your financial life, with special attention to taxes. Our goal is to craft comprehensive strategies that align your finances today and into the future, helping you reduce tax liabilities, enhance investment growth, and preserve your wealth. This alignment supports your goals across a lifetime—and a smooth transition of wealth to future generations.
The Benefits of a Comprehensive Tax Strategy
A well-aligned tax strategy can provide a significant advantage. By addressing taxes, investments, estate planning, insurance, and financial planning as interconnected pieces, you may benefit from greater clarity and control over your finances. Many of our clients find that having a tax strategy tailored to their goals reduces unexpected tax burdens, provides a stable growth path for investments, and increases confidence in their financial plan.
Aligned tax planning allows for a forward-looking perspective, making it easier to make informed financial decisions today with a positive outlook for the future. This approach considers not only immediate gains but also the lasting impact on wealth preservation, retirement readiness, and family legacy.
Understanding Federal Taxes
The U.S. federal income tax system is progressive, meaning your income is taxed in tiers or brackets. As income grows, it moves through brackets with higher rates. For instance, the first portion of your income is taxed at a lower rate, while higher portions fall into higher brackets and are taxed at increasing rates.
For non-qualified investments, like stocks or bonds, long-term capital gains taxes apply to profits on assets held for over a year.1 These gains are generally taxed at lower rates—0%, 15%, or 20%—depending on your total income. However, with increased income, the rate on these gains may rise accordingly.
Currently, federal tax rates are relatively low compared to historical averages, but they may rise in the future due to government debt. In anticipation of such changes, our tax strategies account for both current rates and potential future increases, helping preserve your wealth in any tax environment.
The Value of Diversifying Your Tax Exposure
Strategic tax planning goes beyond just optimizing deductions; it also involves diversifying how and when your investments are taxed. In the U.S., investment accounts typically fall into three main tax treatments:
- Pre-Tax Accounts (Traditional Accounts: IRA, 401(k), 403(b), 457, Profit-Sharing Plans, etc.): Contributions are made with pre-tax dollars, meaning taxes are deferred until retirement, when withdrawals are taxed as income.
- Post-Tax Accounts (Roth Accounts: Roth IRA, Roth 401(k), Roth 403(b)): Contributions are made with after-tax dollars, allowing your investments to grow tax-free, with both contributions and gains available tax-free in retirement.
- 1099 Income from Bonds and Stocks: Income from dividends and interest is taxed when received, either at regular income tax rates or lower capital gains rates, depending on the holding period.2
Our approach involves working closely with you to determine the income you’ll need in retirement. We develop customized withdrawal strategies that may include Pre-Tax, Post-Tax, 1099 income, real estate, pensions, and Social Security, allowing us to optimize which accounts—and tax vehicles—best support your unique situation.
At Truly Aligned, we often find that people contribute to traditional 401(k)s or similar accounts without considering long-term tax implications. By exploring a more personalized approach, your retirement income may become more tax-efficient, diversified, and resilient—even in the face of potential future tax hikes.
Specialized Tax Analysis and Holistic Planning
For those with employer stock options, questions on collecting Social Security, or concerns about the tax impact of growing business income, our wealth management team offers valuable guidance. Using advanced tools like Holistiplan software, we conduct a detailed tax analysis of your previous tax returns, helping us review past taxes and forecast future income. This analysis helps us identify the most tax-efficient time to sell stock options without triggering higher tax brackets and determines the best time to start Social Security based on your financial and health circumstances.
This level of planning helps keep you informed and prepared, knowing that your finances are structured to withstand future tax changes and economic shifts.
Our Dedicated Tax Team
Our in-house team of tax professionals manages all aspects of tax planning and reporting to ensure that your financial values and goals remain aligned. We handle document submissions, collaborate with your accountant, review tax returns, and can even attend tax meetings if needed. This comprehensive service may give clients added confidence, knowing they’re prepared for potential tax changes, political shifts, or economic events. Our proactive approach saves time and brings confidence during tax season, freeing you to focus on your broader financial goals.
Let’s Build Your Tax Strategy
Are you ready to gain a clearer perspective on your tax picture and develop a plan to strengthen your financial future? Schedule a call with Truly Aligned: A Wealth Management Firm and let us help you create a tax strategy that supports your goals and provides lasting confidence. Our wealth advisors and wealth managers are here to make sure your wealth is managed in alignment with what matters most to you.
1 Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Bonds are subject to availability, change in price, call features and credit risk.
2 Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.