High-net-worth individuals face unique challenges in managing their wealth, particularly when minimizing tax liabilities. Our firm offers expert guidance that will help you keep more of your money year after year.
Whether you own rental properties around the country, stock options at multiple startups, or deal with inheritance taxes, we will help you preserve your legacy for future generations while helping you live the lifestyle you desire now.
Below are twelve essential tax strategies designed to preserve and enhance your wealth.
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Maximize Retirement Account Contributions
Diversify your retirement savings by maximizing contributions to various accounts, including 401(k)s, IRAs, and defined benefit plans. Use higher contribution limits and potential tax deductions to optimize your retirement funds and reduce your tax liabilities.
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Invest in Tax-Efficient Funds
Choose investments such as index funds, ETFs, and tax-managed funds that minimize taxable events, thereby reducing your tax liability and improving net returns. These investments are structured to be more tax-efficient, enhancing your overall financial growth. Our team is here to help you make the right choices for your situation.
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Utilize Charitable Giving
Enhance your charitable impact and enjoy tax benefits through direct donations, donor-advised funds, charitable trusts, or by establishing a private foundation. Strategic charitable giving can reduce your taxable income while supporting causes you care about.
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Explore Estate Planning and Gifting
Use advanced estate planning tools like trusts, family limited partnerships, and strategic gifting to reduce your taxable estate and pass on wealth to your heirs tax-efficiently. Proper estate planning ensures that your wealth is transferred according to your wishes with minimal tax implications.
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Take Advantage of Tax-Loss Harvesting
Regularly schedule time with your financial advisor to review your portfolio for tax-loss harvesting opportunities to offset capital gains. This strategy involves selling investments at a loss to reduce taxable gains. If done well, this technique can align with your overall investment goals.
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Invest in Real Estate
Real estate investments can have significant tax advantages, including deductions and depreciation. Consider opportunities in real estate syndications, private funds, or opportunity zones for diversified exposure and potential tax benefits.
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Max Out Health Savings Accounts (HSAs)
Contribute to HSAs to benefit from triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. The “triple treat” of HSAs offers a powerful way to save for future healthcare costs while enjoying tax benefits.
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Consider Municipal Bonds
Invest in municipal bonds for tax-exempt income. Carefully select bonds based on credit quality and tax implications relative to your state of residence to maximize the tax efficiency of your investment portfolio.
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Roth IRA Conversions
Strategically convert traditional IRA funds to a Roth IRA, particularly in lower-income years. This allows you to benefit from tax-free growth and withdrawals in retirement, providing greater financial flexibility and potential tax savings.
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Employing Children in Your Business
If you own a business, hiring your children can provide them with income and valuable experience while shifting income to a lower tax bracket and potentially qualifying for business deductions. This strategy can benefit your family financially and educationally.
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Leveraging 529 Plans for Education Savings
Invest in 529 plans to save for education expenses with tax-free growth and withdrawals. Some states offer additional tax benefits for contributions, enhancing the savings potential for your children’s education.
Strategic tax planning is crucial for high-net-worth individuals looking to maximize their wealth and secure their financial legacy. Safeguard your wealth with a comprehensive range of tax strategies, from maximizing retirement contributions to leveraging educational savings plans. We’re committed to providing the expertise and guidance needed to explore these opportunities. We invite you to discuss how we can support your goals, helping you minimize tax liabilities and achieve your financial objectives.
Contact us today to schedule a consultation and optimize your wealth with proactive tax planning.
If you have any questions, please contact our office at (503) 224-5321. Isler Northwest LLC is a firm of business advisors and CPAs in Portland, Oregon. Our service goal at Isler Northwest is to earn our clients’ trust as their primary business and financial advisor.
Isler Northwest
(503) 224-5321
1300 SW 5th Avenue
Suite 2900
Portland, Oregon 97201
