ServicesTax Management
Tax Management in Neptune City
Taxes are one of the biggest costs you will pay over your lifetime, and much of it comes down to timing and placement. We plan your withdrawals, sales and conversions so less of your money goes to the IRS and the state, and we keep your CPA in the loop.
Planning that happens before tax season
Tax management is not filing your return. It is the planning done all year: which account you draw from, when you sell, what you hold where, and how a big move like a Roth conversion lands on your bill. By April, most of these choices are already locked in.
We handle this as part of your financial plan, not as a one-off trick. Most of the savings come from small, steady decisions made over many years. We work next to your CPA or tax preparer and tell them what we are doing, so nobody is surprised when the return gets put together.
Our advisor is Series 7 licensed, so we can work with the actual holdings in your brokerage accounts. We are also a credentialed holistic financial coach through Columbia University. In plain terms, taxes get weighed against your family, your cash flow and your goals. Saving a little tax is never worth wrecking the rest of the plan.
What tax management covers
Tax-loss harvesting
When a holding in a taxable account drops, we can sell it to lock in the loss and use it against gains. We buy something similar so your portfolio stays on track, and we watch the wash-sale rule so the loss still counts.
Putting each investment in the right account
Some investments throw off a lot of taxable income. Those usually belong in an IRA or 401(k). Tax-efficient funds fit better in a regular brokerage account. Same investments, smaller tax bill.
Roth conversion planning
The years between retiring and starting Social Security are often low-income years. That can be a good window to move money from a traditional IRA to a Roth. We run the numbers on federal and New Jersey brackets before anything moves.
Withdrawal order in retirement
Which account you spend from first changes how much tax you pay for decades. We map out the order, plan around required minimum distributions, and look at qualified charitable distributions if you give to charity after age 70½.
Selling large or inherited positions
A big gain in one stock, or shares you inherited, needs care. We check your cost basis and can spread sales over more than one tax year.
Working with your CPA
We share our plan and the reasons behind it with your tax preparer. You get one plan, not two people guessing at each other.
Signs it is time to look at your taxes
April keeps surprising you
If you owe more than you expected year after year, something in your accounts is creating taxable income you did not plan for.
Your funds pay out gains you never sold
Some mutual funds in taxable accounts send out capital gains every December. You owe tax on them even if you never touched the fund.
Most of your savings sit in a pre-tax 401(k)
Every dollar you pull out later is taxed as income. Planning before you retire gives you more choices about when that happens.
You came into money
Selling a business, getting a bonus or receiving an inheritance can push you into a higher bracket for a year. A plan made beforehand helps more than one made after.
You inherited an IRA
Most non-spouse heirs now have to empty an inherited IRA within ten years. How you pace those withdrawals matters.
How we work through it with you
- 1
Introductory meeting
First we sit down and talk, at our office, by phone or over video. You walk us through the tax worries on your mind and the goals you have for your money. If your situation is outside what we do well, we say so up front.
- 2
Look at your returns and statements
We review your last couple of tax returns and your account statements. We look for places you are paying more than you need to, like gains in the wrong account or idle losses.
- 3
A written list of moves
You get a short written plan with each recommended step, why it helps and what the trade-off is. We go over it with you, and with your CPA if you like, before anything happens.
- 4
Follow-through all year
We watch for harvesting chances when markets drop and do a year-end check each fall, while there is still time to act before December 31.
What affects the cost
Tax management does not come with one set price, because every client brings different accounts and different goals. At the introductory meeting we lay out how we are paid, before you sign on to anything. The fee and the work it covers are spelled out up front, in plain words.
- How many accounts you have
- A couple with one IRA each is simpler than a family with taxable accounts, trusts and old 401(k)s spread across several firms.
- Business ownership
- Owning a business adds retirement plan choices, irregular income and sale planning. That takes more time to get right.
- One-time project or ongoing
- A single Roth conversion analysis is a different job from year-round tax-aware management of your portfolio.
- Coordination with other advisors
- Working closely with your CPA or estate attorney adds meetings and paperwork, and it usually pays for itself in fewer mistakes.
Tax management questions
Something not covered here? (732) 655-2079
Do you prepare or file my tax return?
No. We are not your tax preparer. We do the planning during the year and work with your CPA or preparer, who files the return. If you do not have one, we can talk about what to look for.
Does New Jersey tax my retirement income?
New Jersey does not tax Social Security. Pensions and IRA withdrawals are generally taxed, but many retirees can exclude part or all of that income depending on their total income. We check where you fall and plan your withdrawals around it.
Should I do a Roth conversion?
Sometimes yes, sometimes no. It depends on your bracket now, the bracket you expect later, and whether you can pay the tax from outside the IRA. We run the numbers for your situation and show you both sides.
Will tax planning change what I am invested in?
Usually it changes where things are held more than what you own. When we do sell something to harvest a loss, we replace it with a similar holding so your mix stays close to the plan.
Can you help if my accounts are at another firm?
We can review your statements and returns and give you a plan. To manage the moves ourselves through the year, the accounts would need to be with us. We will lay out the options at the introductory meeting.
Bring last year's return and let's talk
An introductory meeting is a plain conversation about your accounts, your tax bill and what you want your money to do. We meet clients from Neptune City and nearby towns at our office, by phone or by video.