To maximize wealth, Americans should look beyond smart investments and embrace savvy tax planning.
From strategies aimed at reducing taxable income to tax-efficient portfolio moves, there are a host of ways investors can build and protect their capital. However, many people aren’t taking advantage of the options available to them.
“When people are searching for ways to save money — yes, you can buy in bulk, yes, you can limit eating out — but I think sometimes people forget that you can be strategic in tax planning to save money,” said certified financial planner Kamila Elliott, co-founder and CEO of Collective Wealth Partners. “Not thinking about tax planning, it can be a significant oversight for a lot of families.”
In fact, a recent survey from the Nationwide Retirement Institute found that most Americans aren’t prepared when it comes to taxes.
While 80% expect taxes to rise in the future, only 31% of that cohort are taking steps to adjust their financial plans accordingly, the poll found. What’s more, 17% of investors said not knowing the best tax strategies for their portfolio is one of their biggest retirement-planning concerns.
