Implementing Simple Tax Strategies

As seen in South Lake Neighbors Magazine (February 2018)

By Marc D. Langva, CFP ®

Don’t be a penny-wise and pound-foolish!

Implementing Simple Tax Strategies
By Marc D. Langva, CFP , Founder & CEO of WorkOptional

Don’t be penny-wise and pound-foolish! Before you implement any strategy to reduce your tax liability, make sure it complements your overall financial plan to achieve your goals.

Below are a few simple tips to get you started in lowering your taxable income.

Contribute to your employer-sponsored retirement plan such as a 401(k). In most plans, they are pre-taxed dollars therefore reducing your taxable income (your goal). If a company matches your contributions, this is free money, take full advantage! If you do not have an employer-sponsored plan available, consider making contributions to a traditional IRA, which is also pre-taxed, lowering your taxable income.

Both Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are tax-advantaged accounts that allow people to save money to pay for qualified medical expenses by setting aside pre-tax dollars, again reducing your taxable income.

The best way to achieve your financial goals, is to work with a Certified Financial Planner TM (CFP ) who is qualified to advise you on the best path to your personal wealth.

Margaret Leto March 13th, 2018

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