Tax Planning in Colorado Springs

We will help you create an individualized investment plan that aligns with your long-term goals and aspirations and considers how much of the investment actually returns back to you after paying taxes.

 An essential component of your investment plan is tax planning, which includes these four pillars of tax efficiency:

INVESTMENT SELECTION

Since you should never pay more in taxes than you are legally required, our plans focus heavily on maximizing your tax efficiency. We’ll identify the investments that provide the least tax liability.

LONG TERM INVESTING

We recommend long-term investing to our clients because the long-term capital rate is lower than the short-term capital gains rate. That means you’ll pay less in taxes if you hold your investment for a minimum of one year.

Tax Deferred vs. Taxable Accounts

While a tax-deferred 401(k), 403(b), or traditional IRA account doesn’t require you to pay taxes until you start making withdrawals, a Roth IRA or Roth 401(k) account doesn’t require taxes on qualified distributions or gains.

By contrast, you must pay taxes on taxable income and capital gains taxes on taxable investment profits. At Dodds Wealth, we recommend our clients put non-tax-efficient investments in tax-deferred or exempt accounts while tax-efficient investments remain in a taxable account.

TAX-LOSS HARVESTING

Our experienced tax planning advisors in Colorado Springs understand when it is best to take advantage of tax-loss harvesting and sell an investment for a loss to offset taxes on income and gains.

Benefits of a Tax Planning & Financial Advisor in Colorado Springs

The team of financial advisors at Dodds Wealth in Colorado Springs possess the knowledge and experience required to help you navigate the tax impacts of investing. We understand trust is like respect; both are earned, not given. We want to earn your trust and respect and we’re confident you’ll enjoy our client-first approach as we develop an individualized plan that works toward your goals.

Next Steps to Become a Client

The first step is to schedule an initial meeting, where we’ll get to know you better and see how your tax investment plan can help you pursue your objectives. If we’re a good fit for each other, we can proceed to establish an effective financial plan that considers your existing portfolio and investment plans. Should you choose to have us manage some or all of your accounts, the following weeks will involve the transfer of those accounts. From there, our client/advisor relationship will continue to develop as we update your progress and give appropriate tax planning and investment recommendations when they fit your personalized plan.

Contact Dodds Wealth in Colorado Springs

Please complete the form below to schedule an initial consultation. We look forward to meeting with you and answering all of your questions.

*Withdrawals of Roth IRA earnings prior to age 59½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Investing involves risk including loss of principal.