Potential Tax Savings from Your Taxable Investments

We recently reviewed your financial situation and uncovered an opportunity that could help you save money on taxes. According to your IRS Form 1099, you had taxable income from investments last year. We believe you would benefit from a review of your investment account locations and capital gains/losses to optimize your taxable income.

• Taxable accounts, such as stocks, bonds, and other property allow you to deposit funds, buy and sell investments, and pay taxes now rather than when the investment is distributed.
• With taxable investments, the purchase price creates a basis that will not be taxed when sold, and certain investments may qualify for lower capital gains tax rates if the asset has been held for more than one year. This can make them more advantageous to your overall financial situation.
• Alternately, non-taxable accounts, such as traditional IRAs, are not taxed until money is taken out, but both the original contribution and investment growth are taxable at your ordinary income tax rate.

The use of taxable and non-taxable accounts depends on your unique financial goals, investment objectives, and risk tolerance. It’s critical to work with a financial professional who understands taxes to ensure the combination of investment vehicles and allocations supports your short- and long-term needs.

Additionally, investment accounts must also be actively managed to take advantage of capital gains and losses to control your taxable income. Unfortunately, not every financial advisor does this, but at [Firm Name], we do. In fact, the potential value of working with a professional advisor can add approximately 5% to your portfolio each year, with 1.17% of that attributed to recommendations to minimize taxes*.

Please call our office at your earliest convenience to schedule a review of your investments. We look forward to helping you design a tax-intelligent financial strategy.