Tax
diversification
strategy
Maximize your wealth with a strategic tax diversification plan
Unlock long-term financial growth by balancing tax-deferred, tax-free, and taxable investments. Our strategic tax diversification plan helps you minimize tax burdens, protect your income, and build wealth more efficiently—now and in retirement
Why you should start saving now?
Tax diversification is a strategy that spreads your investments across different types of accounts that are taxed in various ways. This enables you to strategically manage when and how you pay taxes, giving you more control over your wealth. The three main types of tax treatments for investment accounts are
- Tax-deferred accounts (e.g., Traditional IRAs, 401(k)s)
- Tax-free accounts (e.g., Roth IRAs, Roth 401(k
- Taxable accounts
By combining these accounts, you can optimize your tax liability based on your goals, age and future needs.
Why tax diversification is essential for you?
Guiding you with configured financial strategies from retirement to legacy planning
Control your tax burden
Distribute investments across tax-deferred, tax-free, and taxable accounts to reduce tax impact and provide flexibility in withdrawals.
Minimize risk in retirement
Avoid placing all retirement savings in one account to reduce the risk of unexpected tax bills affecting your retirement income
Maximize investment growth
Tax-efficient accounts reduce taxes on dividends and capital gains, allowing your assets to grow faster through compounding
Flexibility for life's unexpected events
Adapt to life changes by adjusting withdrawals from various accounts to minimize tax exposure for major events like buying a home or covering education or health expenses.
Get expert answers to maximize your tax efficiency and secure your financial future
Master your tax strategy
1. How does tax diversification work in retirement?
Tax diversification helps you manage your retirement income more efficiently by allowing you to withdraw funds from different types of accounts, minimizing taxes in any given year.
2. Do I need a tax advisor for tax diversification?
While it’s not mandatory, working with a tax professional or financial advisor can provide valuable guidance in creating a tax diversification strategy tailored to your needs.
3. Can tax diversification help reduce estate taxes?
Yes, in some cases, tax diversification can help reduce estate taxes by managing the way wealth is transferred, using tax-free and tax-deferred accounts strategically.
4. What types of accounts should be included in a tax diversification strategy?
A well-rounded tax diversification strategy typically includes a mix of taxable accounts, tax-deferred accounts (like traditional IRAs), and tax-free accounts (like Roth IRAs). This variety helps optimize withdrawals and manage taxes effectively during retirement.
5. How can tax diversification affect my required minimum distributions (RMDs)?
Tax diversification can help manage RMDs by providing more flexibility in choosing which accounts to withdraw from. With the right strategy, you can minimize the impact of RMDs on your tax situation and maintain more control over your retirement income.