5 Reasons You Should Take a Tax Intelligent Approach to Investing

Alecia Decker |

Clients of Creason-Edwards & Cimarolli rely on us to provide comprehensive wealth management advice that’s rooted in our extensive history of tax and accounting work. We take a proactive, holistic approach to integrated financial services, which allows you to feel more confident about pursuing your goals.

Not all financial professionals are created equal, our expertise in tax and accounting allows us to provide families with strategies to plan for the future. The value-added services we deliver at Creason-Edwards & Cimarolli help minimize your tax liability to maximize your financial opportunities. Here’s how:

  1. Maximize Tax Efficiency. A tax-intelligent approach involves optimizing your investment portfolio to minimize tax liabilities. This can be achieved by strategically choosing investments with favorable tax treatment, such as long-term capital gains, or by employing tax-efficient investment strategies.


  1. Utilize Capital Gains Management. Timing is crucial when it comes to realizing capital gains. A tax-intelligent advisor may encourage you to strategically sell assets to manage capital gains, taking advantage of lower tax rates for long-term holdings or offsetting gains with capital losses to reduce overall tax liability.


  1. Diversify Asset Location. Placing different types of investments in the right accounts can be a tax-efficient strategy. For example, holding tax-inefficient assets in tax-advantaged accounts and tax-efficient assets in taxable accounts can optimize after-tax returns.


  1. Optimize Tax-Advantaged Accounts. Utilizing tax-advantaged accounts, such as IRAs or 401(k)s, allows clients to benefit from tax-deferred or tax-free growth. Contributions to these accounts may also provide immediate tax advantages, lowering current taxable income.


  1. Leverage Tax-Loss Harvesting. This involves strategically selling investments at a loss to offset capital gains and potentially reduce taxable income. Tax-loss harvesting can be a valuable tool for managing taxes and improving overall portfolio performance.


Before implementing any tax strategies, it's important to consult with a tax-intelligent financial professional to ensure your strategies and investments align with your specific financial situation and goals. And as tax laws change, it’s important to stay informed about current regulations because they’re crucial for making informed investment decisions. Here at Creason-Edwards & Cimarolli, we take care of that for you, while keeping in mind your short- and long-term goals.

If you have any questions, contact us today to discover how our tax-intelligent strategies can impact your financial growth.