As featured 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
Posted In: Uncategorized