INDIVIDUALS

Tax Planning Strategies

At FFR, we believe that strategic tax planning is paramount for individuals seeking to optimize their financial outcomes. Our approach is centered on tailoring personalized tax strategies that not only comply with regulations but also unlock opportunities for savings and wealth accumulation.

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how can effective tax planning help individuals?

Maximize retirement savings with catch-up contributions for those aged 50 or older.

Plan for tax-exempt withdrawals by considering Roth conversions with guidance from your tax and financial advisor.

Optimize Social Security benefits by understanding tax implications and diversifying income sources.

Ensure tax-efficient portfolio balance and re-balancing based on needs, risk tolerance, and timeline.

Strategize estate planning with trusts, gifting, and charitable contributions to minimize tax liabilities.

Explore tax advantages by relocating to states with lower tax burdens or living costs.

focused portfolio strategies

Asset allocation and asset location are two key strategies that can shape the success of your portfolio. Asset allocation diversifies your investments among various asset classes, while asset location — the combination of holdings across different tax structures — incorporates tax strategies to reduce your liability risk when assets are withdrawn. Mastering both helps build a more tax-efficient investment approach.

When it comes to taxes, not all accounts are created equal.

When clients are building wealth, the accounts they use can either be taxable, tax-deferred, or tax-free. When they generate income from those assets, the money they receive will either be taxable or income tax-free. Optimally, they'll want the benefits of tax-deferred assets as they build wealth and income that is tax-free when they retire.

*Income tax-free access to fixed and variable life insurance during accumulation without penalties. Assuming policy loans after withdrawals of the policy owner's basis under a policy that is not a modified endowment contract (“MEC”). Loans and withdrawals reduce the policy's cash value and death benefit, and withdrawals in excess of the policy's basis are taxable. Under current rules, loans are free of income tax as long as the policy remains in effect until the insured's death at which time the loan will be satisfied from income-tax-free death benefit proceeds. If the policy is surrendered, lapsed or treated as a MEC, any loan balance will generally be viewed as distributed and may be taxable to the extent of any gain in the policy.

**Contributions to a Roth IRA may generally be withdrawn tax-free at any time. Earnings may generally be withdrawn income tax-free if the individual has held amounts in a Roth IRA for at least 5 years and the withdrawal is made after age 59½ . If the withdrawal is made before the 5-year period and age 59½ , income taxes and an additional 10% federal income tax penalty may apply. Other exceptions may apply.

***Certificates of deposit (CDs), money market deposit accounts, and savings accounts are generally FDIC-insuranced up to $250,000.

Tax Treatment Glossary

Taxable

You will pay taxes on interest and/or capital gains each year from your brokerage, CD, money market, and savings accounts.

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Tax-Free

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Will be invested after tax, but you will not pay taxes on distributions from these assets.

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Tax-Deferred

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Will be invested pretax and grow tax deferred. All distributions from your tax-deferred accounts will be fully taxable at ordinary income tax rates when withdrawn (will not be subject to 10% penalty if withdrawn after age 59½).

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