It’s Not What Your Clients Earn That Counts,
It’s What They Keep - - After Taxes
(after two levels old taxes and three more levels of new taxes!)
With 2013’s introduction of the 3.8% net investment income tax (NIIT), the 20% capital gains rate, the 39.6% income tax rate, and the PEP and Pease limitations, America shifted overnight from a two dimensional income tax system to a five dimensional system.
Virtually every financial decision now needs to be analyzed through the lens of not only the regular income tax and AMT, but also the NIIT, the new additional brackets for high income taxpayers (the “supertax”), and the PEP and Pease limitations. The complexity of going from a two dimensional system to a five dimensional system is exponential, not linear, which requires a quantum leap in tax analysis methodology, tax strategy and tax planning software tools.
Whether you’re a financial advisor, CPA, or attorney, you’ll have an unprecedented opportunity to demonstrate value to clients when you know and understand the newest strategies to help them navigate through the five dimensional income tax system, including:
- How the 5 tiers of income tax interact
- Tax efficient investment approaches that factor in asset classes, asset allocation, and overall portfolio tax structuring
- Bracket management strategies, like gain/loss harvesting and retirement plan contribution/distribution timing
- Tax driven spend down strategies
- Software tools that may assist you
- And much more!