Financial Planning – Taxes Are a Major Expense Consideration
In your financial planning budget, if you have one, where do income taxes rank as an expense? For many of us, income taxes may be our second largest expense line to our home mortgage. Think about it, if you are self-employed and net $100,000 in your business you first pay about $14,000 in self-employment tax and then you pay, depending on your marital status, dependents numbers and your itemized deductions number, an additional income tax which in my experience as a tax compliance professional will range from $7,500 to $16,000. In this example, taxes are the number one expense line item. I know that taxes are my biggest expense line item in my budget and are a major consideration in my personal financial planning.
So, how much emphasis does your current financial planner place on income tax considerations as they pertain to investments, investment income and other financial decisions? Does your financial planner have expertise in tax planning and compliance services? As I have written before, a financial plan should be intertwined with a sophisticated tax plan and a tax plan should be intertwined with a financial plan. Failure to do this is failing to achieve maximum financial results and objectives. Accordingly, if your current financial planner or your planning software is not factoring tax implications, and I mean above and beyond just computing the tax numbers, then perhaps you should consider a more detailed approach to your financial planning.
At Joseph F. Fragnoli, CPA, PC, in Nashville and Hendersonville, TN, our practice has an emphasis in formal tax planning and financial planning services. We have extensive experience in tax planning and I, Joseph Fragnoli, am an investment advisor representative with Financial Gravity Companies. Financial Gravity has the same holistic approach to coordinating financial planning with tax considerations. With the current tax legislation that cleared the US Senate and most likely will become law for 2018, now is the time to review your tax and financial plans and make the appropriate adjustments to maximize the tax implications. Please feel free to give our office a call to set-up an appointment to meet with me to discuss your current plan or to establish a financial and tax plan at (615) 678-4751 or send us an email at firstname.lastname@example.org. The initial meeting doesn’t cost you anything and we will provide you with a great cup of coffee and a pleasant atmosphere.