ServicesTax Management
Tax Management in Eatontown
Taxes chip away at what your money earns every year. We find which accounts, holdings and income sources drive your bill, then adjust what you already own before suggesting anything new. Your tax preparer stays in the loop from start to finish.
Keeping more of what your money earns
Taxes are one of the few costs in a portfolio you can plan around. Where an account sits, when you sell and which account you draw from first all change what you owe. Most people never look at these choices together, so money leaks out a little each year.
Our approach is simple. We start with the accounts and holdings you already have and adjust them. Moving a fund from one account type to another, or timing a sale for a lower-income year, often does more than selling everything and starting over. When a bigger change makes more sense, we say so and show you why.
This is planning, not tax filing. We are not your tax preparer. We bring the investment side to the table and work with your accountant so both of you see the same numbers.
What tax management covers
- Harvesting losses
- A taxable holding that has dropped in value can be sold to cancel out gains you took elsewhere. We keep an eye out for those moments and move into a comparable holding so your plan keeps moving.
- Matching holdings to account types
- Bonds and funds that trade a lot tend to do best inside tax-deferred accounts. Growth investments often belong in a Roth or a taxable account. We rearrange what you own across accounts to shrink the tax you pay each year.
- Roth conversion math
- In lower-income years, we test whether moving part of a traditional IRA into a Roth makes sense. Some years it does. Other years it does not, and we say so plainly.
- Which account to tap first
- The order you draw from accounts in retirement can shift your taxes for a long time. We lay out a withdrawal sequence that supports your retirement income and your goals.
- Required distributions and charitable gifts
- We map out required minimum distributions early so they do not bump you into a higher bracket without warning. For clients who give, we weigh sending gifts directly from an IRA.
- Coordinating with your accountant
- Your tax preparer gets our findings, and we field any questions they have. Every decision stays yours.
When your taxes need a second look
April brought a nasty surprise
An unexpectedly large bill often points to taxable income your portfolio created without anyone planning for it.
Year-end fund payouts keep showing up
Mutual funds held in a taxable account can hand you capital gains each December, and you owe tax on them even if you sold nothing.
You hold a stock only because of the tax
A position with a big built-up gain can feel impossible to sell. It can be wound down gradually instead of all at once.
A big change in income
A business sale, a large bonus, a new pension or a year without work can each open or shut a planning window.
Required distributions are a few years out
Once they start, they add to your income and your taxes. The stretch just before is usually when planning does the most good.
What moves the price
Tax management has no flat price, since every client brings a different set of accounts and income. In the introductory meeting we walk through how we charge before we start. Our fees are laid out up front, along with what each one covers.
How many accounts, and what kind
One IRA takes less time to sort through than a trust, a brokerage account and three 401(k)s left behind at old jobs.
Owning a business
A business brings more income streams, more retirement plan choices and, at some point, a sale to plan around.
A single look or year-round work
A one-time review is priced differently from ongoing monitoring that includes a check before December each year.
How knotted up the holdings are
Big built-up gains or a pile of overlapping funds need careful, gradual unwinding so the tax hit stays small.
How we work through it
- 1
Introductory meeting
We talk about your income, your accounts and what is bothering you about taxes. Meet at our office or by phone or video.
- 2
Gather the paperwork
We ask for your last two tax returns and current account statements. That shows us where the tax is coming from.
- 3
Review and plain findings
We go through each account and list what we found and what we would change. Small adjustments come first. Bigger moves come with the reasons behind them.
- 4
Make the changes
You decide what to do. We carry out the investment changes and send your accountant a summary.
- 5
Check in before year-end
Every fall we look again for losses to harvest, conversion room and distribution timing, while there is still time to act.
Tax management questions
Do you prepare my tax return?
No, we do not file returns. Our job is the investment and planning side, and we coordinate with whoever prepares your taxes. If you are without an accountant right now, we can share what qualities matter when you pick one.
Will I have to sell everything and start over?
Rarely. Selling it all can create the exact tax bill you hoped to dodge, so we begin by adjusting the holdings you have. When a clean break really is the better move, we lay out the numbers before you decide.
Is a Roth conversion right for me?
That hinges on your income today, your expected income in retirement and how many years the money stays invested. We work out the math for your case. Some clients convert a slice each year for several years, and others are better off not converting at all.
How does New Jersey tax retirement income?
Social Security is not taxed by New Jersey, but most other retirement income is, with certain exclusions tied to your income level. We build the state rules into your withdrawal plan and check the specifics with your accountant.
Can I meet you in person?
Yes, our office is open for meetings. Plenty of clients in West Long Branch, Red Bank and the surrounding towns choose phone or video instead. You get the same work either way.
See where your taxes are leaking
Come to an introductory meeting with a recent return and an account statement. We walk you through what stands out and which small change we would make first.