Secure Your Financial Future: Long-Term Tax Planning Made Simple

– Tax planning should not be limited to a yearly basis, but should include long-term considerations for future financial stability.
– It is important to consider future changes in income and tax brackets, especially for individuals on an upward career trajectory.
– Anticipating future tax brackets is crucial when planning for retirement, as it can affect retirement fund contributions and cash flow after retirement.
– The decision to take the standard deduction or itemize tax deductions depends on the individual’s specific financial circumstances and eligibility for various deductions. – Tax credits reduce the total amount of taxes owed, while deductions reduce taxable income.
– Tax shelters, such as retirement accounts and investment strategies, can be used to strategically reduce tax burden.
– Tax planning is an ongoing process and it’s important to find a trusted advisor to help navigate the evolving tax landscape. – Tax planning should be viewed as a long-term practice in order to build wealth and create a legacy for future generations.
– First Citizens Bank recommends seeking professional advice for specific accounting, financial planning, investment, legal or tax needs.
– Links to third-party websites may have different privacy policies and security measures than those of First Citizens Bank.

https://www.firstcitizens.com/personal/insights/taxes/long-term-tax-planning