Wealth Management

Tax Planning

The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. The key to successful tax planning and tax preparation is planning ahead in order to take full advantage of the tax laws.

Your Tax Planning Approach

Your tax planning and investments are coordinated as part of your overall financial strategy. Cabot works for you to unify these two elements to ensure that your tax liability is minimized.

At the core, this involves decisions as to how to best utilize any tax-deferred investment portfolios like 401Ks, IRAs, or Keoghs. Interestingly, few people even consider how they are investing in these portfolios; or worse still, assume that because they are “retirement” portfolios that they must be invested in only the safest investments possible.

Asset Allocation and Tax Planning

Once an asset allocation strategy is determined, it becomes critical to understand where to best locate the allocation among existing accounts.

Tax Planning Services

As part of our tax planning process, we give great consideration to any existing tax-loss carryforwards and how they might be utilized within the present tax year.

To ensure that underpayment penalties are avoided, we run tax projections during the year to evaluate an appropriate amount of estimated payments that should be made on a quarterly basis. We also calculate Minimum Required Distributions for retirement accounts, if necessary.

Because many clients are business or equity owners, we must initially review the business (C or S Corp., LLC, LLP, etc.) to ensure the best possible balance is achieved between control, taxes, and personal liability. We also offer to measure the impact of exercising Incentive Stock Options in relation to the Alternative Minimum Tax.

Tax Preparation

Cabot is pleased to offer tax preparation service for high-net-worth clients who need help preparing their individual tax returns. This service includes year-long tax planning and the preparation of individual and fiduciary tax returns.

The ability to integrate year long financial planning, portfolio management and tax preparation allows us to seamlessly integrate every aspect of your financial affairs. For those high-net-worth clients with their own CPA, we are able to work closely with their tax professionals to help deliver the same level of service and integration.

Tax preparation services require a minimum asset level to be maintained with the firm or the payment of an ongoing fee. Cabot reserves the right to limit this service and it may decline to prepare individuals taxes who otherwise meet the required minimums.

Can Cabot Help You With Tax Planning Advice?

If you have questions about tax planning, Cabot Wealth Management can help. Contact us to request more information.