Tax planning is the key to successfully and legally reducing your tax liability. Elite Resource Partners proactively collaborates with the advisor team to recommend tax planning strategies to reduce your tax liability and therefore maximize your after-tax income. With shifts in the economy, technology and legislation, it has become more challenging than ever to navigate through the tax code, but because of our team approach and access to tax specialists, we have established a track record of success. Through our tax planning advice and advanced strategies, we maximize your income today so you are confident about the future.
Some of Our Advanced Tax Strategies:
Tax-Free Retirement Plans
As one never knows what the tax rate will be at their time of retirement, it is critical to try to limit taxation on retirement funds. Both Roth IRAs and plans such as the Professional Retirement Plan (PRS) we can limit your taxable retirement income and keep taxes to a minimum.
Financial Modeling
Through financial modeling we can test and verify ideas, strategies, or the impact of products on your situation to see which are in your best interests prior to implementing the financial decisions. Understanding the impact of our work on your decisions, we create measurable visual models of the strategies in order to illustrate the impact on taxes while also building, protecting, and growing our wealth.
This is done by one of the team members so you can review the impact prior to making a financial implementation decision. The key is for you to have clarity on the impact of the strategy in order to make an informed decision. With that in mind, in many cases, a visual model of the strategy may be created to illustrate the impact on taxes and other aspects of your wealth plan.
The financial modeling process is designed to:
- Contribute to your thinking about tax planning
- Give clarity as to how your different financial products work
- Define your overall products mix
- Illustrate the results of different financial alternatives
- Eliminate financial errors or future regrets
Estate Planning
Estate planning gives you the opportunity to pass your wealth on as you see fit. Your estate includes everything from your car and home to life insurance and bank accounts, but estates and inheritances unfortunately also mean taxes. We can help you to pass on your estate with as little taxation as possible by avoiding tax traps and properly managing life insurance and other assets.
Irrevocable Trusts
Through irrevocable trusts, assets are transferred into the trust for later ownership by the beneficiary, and the grantor’s ownership is completely removed from these assets. Irrevocable trusts can include life insurance policies, cash, investments, businesses and more. The main benefits of these types of trusts are elimination of estate tax on assets inside the trust, asset protection, and avoidance of “dis-inheritance”.
Captive Insurance Companies
A captive insurance company – which is an insurance company affiliated with an operating business entity — is typically formed to provide insurance to the business as a supplement to its commercial coverage. For more than 50 years, large U.S. corporations have utilized captive insurance companies to obtain better rates on reinsurance, to allow coverage of risks not easily available (or not available) at a reasonable price on the commercial market, or to replace commercial insurance coverage. It has been estimated that at least 80% of Fortune 500 companies operate one or more captive insurance companies. One of the successful results of captives has been the reduced loss ratios experienced by the businesses as a result of improved risk management practices. When a business manager realizes that fewer losses translate into an improved bottom line for the corporate group, better risk management tends to follow. In the case of commercial policies with few claims and losses experienced over many years, the benefit of substituting captive policies is not so much a further reduction of losses as the capturing of underwriting profits that would otherwise have been paid to the commercial insurer. Large captives have also enjoyed income tax benefits, primarily through the deferral achieved by the creation of loss reserves.
Within our complicated taxation system, there are many ways to be taxed on the sale of an asset, on income from investments, and at the same time, there are multiple ways to avoid or minimize taxation. For example, selling a property that has significantly appreciated could cost tens of thousands in avoidable taxes but in many cases the tax can be avoided or reduced if certain tax strategies are implemented. Leaving your IRA to your estate instead of a real person can result in a chunk of your hard-earned money going to fees, debts and taxes. When these affairs are managed with advanced tax planning in mind, the difference in your financial results is significant.
Smart management of your liquid assets (stocks, bonds and accounts), life insurance and fixed assets is necessary to maximize your wealth as well. Our tax planning services help you determine the best option to manage your current assets and plan for your retirement and coordinate your estate planning so that there is minimal tax liabilities.