An often overlooked, yet important, aspect of portfolio management is investing in a tax-efficient way. At Milestone, we incorporate tax planning in all aspects of our financial planning, and this includes investment management. There are many different retirement savings accounts people can invest in with varying tax differences.
Distributions from an IRA are taxed when withdrawn; withdrawals from a Roth IRA are often tax-free; and income (dividends, interest, capital gains) in a standard (brokerage) investment account is taxed every year. We customize our investment strategy to your specific situation, considering the tax implications of the different types of accounts you own, trying to achieve maximum tax efficiency.
Our tax planning extends beyond just selecting which investments each account should hold, but also considers other important tax aspects such as future Required Minimum Distributions (RMDs), Medicare premiums, taxation of Social Security and the tax ramifications for future inheriting generations or charitable wishes. At Milestone we aim to understand your personal goals and aspirations and structure your different investment accounts to reach them in the most tax-efficient way possible.