Tax Planning

Tax planning and financial planning are closely related to each other because of the significant impact that taxes have upon your finances. Any investment made more attractive by the timing of the profit or the way it is taxed is a tax incentive investment.

Tax incentive investments are based on specific provisions. The tax law provisions enacted by Congress encourage investment capital to flow directly into the basic areas of our economy such as housing, petroleum, manufacturing and agriculture. In one sense, “tax incentive” means investing in vital industries in a way that permits you, rather than the companies you invest with, to keep the tax benefits, while retaining your opportunities for significant profits. As in the above quote by Judge Learned Hand, formerly of the New York Supreme Court, there is nothing illegal or immoral about tax incentive investments.

There are many forms of tax incentive investments. Municipal bonds and unit investment trusts provide tax-free income. Annuities, life insurance policies, IRAs, Keoghs and pensions, as well as oil and gas drilling, equipment leasing, research and development in various forms provide tax reduction through income tax deferral of taxation on the appreciation until the asset is liquidated.

Although an investor can structure an individual transaction, tax shelters are often structured as partnerships. There are two types of partnerships: a limited partnership and a general partnership. In a partnership, the value of the investment will be a blend between tax advantages and investment advantages depending on the objectives of the partnership.

Planning for Retirement

A secure, comfortable retirement is every worker’s dream. And now because we’re living longer, healthier lives, we can expect to spend more time in retirement than our parents and grandparents did. Achieving the dream of a secure, comfortable retirement is much easier when you plan your finances.

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities and investment advisory services offered through Lion Street Financial, LLC., member FINRA/SIPC. Fixed and traditional insurance offered through Feliciano Financial Group (FFG). Medicaid planning and consulting offered through Geriatric Care Solutions (GCS). FFG and GCS are not affiliated with Lion Street Financial, LLC.

This site is published for residents of the United States only. Registered Representatives and Investment Adviser Representatives of Lion Street Financial, LLC and Lion Street Advisors, LLC respectively, may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed.

DOL ERISA: Effective June 9, 2017, all individuals who provide advice to retirement plans, including Individual Retirement Accounts (IRAs), must abide by the fiduciary standard.  What does the fiduciary standard mean?  This means that your advisor must put your interests first before their own or that of the firm, make prudent recommendations, charge reasonable compensation and make no misrepresentations to you regarding recommended investments.  The recommendations made by your advisor must be based upon your specific investment needs and objectives.  The fiduciary standard is applicable to any recommendations that your advisor makes to you, the client, for your retirement account.  Please note the firm does have policies and procedures in place to monitor this level of fiduciary responsibility for our clients.

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