Personalized Tax Planning in Bedford, NH

Tax planning is a critical component of managing your finances effectively, yet it often feels overwhelming. At Cohen Investment Advisors, we’re here to help simplify the process, offering clear and practical tax planning strategies to reduce your tax liability, optimize savings, and work toward your long-term financial goals. Whether you’re based in Bedford, NH, or anywhere else, our team is dedicated to helping your taxes work for you.

The Objectives of Tax Planning

The main objective of tax planning is to minimize the amount you pay in taxes to try to ensure that you don’t overpay while still meeting your tax obligations. A good tax plan also helps you:

• Maximize Tax Efficiency – Reduce your overall tax liabilities by strategically managing your income and investments.
• Align With Financial Goals – Tax planning should support your broader financial objectives—whether it’s saving for retirement, buying a home, or funding your children’s education.
• Prepare for Retirement – Utilize tax-advantaged retirement accounts to build your savings while lowering your taxable income today.
• Stay Compliant – Keep you on track with tax laws and avoid unnecessary penalties or mistakes during tax filing.

Different Types of Tax Planning: Finding the Right Strategy for You

When it comes to tax planning, there’s no one-size-fits-all solution. We help individuals, families, and business owners create custom tax planning strategies that align with their goals. Here’s a closer look at the different types of financial tax planning we help clients explore:

Short-Term Tax Planning

Short-term tax planning focuses on minimizing your tax liability in the current tax year. Common strategies include:

• Deferring income (such as bonuses or business receipts) to the following year
• Accelerating deductions by prepaying expenses like property taxes or medical bills
• Taking advantage of year-end tax breaks

This approach is especially helpful if you’re expecting changes to your income or tax situation soon.

Long-Term Tax Planning

Long-term tax planning looks several years ahead—and often covers major life events like retirement, education funding, or estate transfers. It might include:

• Retirement tax planning with IRAs, Roth accounts, and 401(k)s
• Investment tax planning for tax-efficient asset growth
• Estate tax planning to manage inheritance taxes and wealth transfer

Smart long-term planning today can help secure a more tax-efficient tomorrow.

Permissive Tax Planning

With permissive tax planning, you take advantage of the deductions, credits, and incentives that the government encourages, such as:

• Charitable contribution deductions
• Education credits like the American Opportunity Credit
• Energy-efficient home tax credits

These strategies help lower your tax burden, usually without major changes to your financial life.

Purposive Tax Planning

Purposive tax planning involves structuring your transactions and investments intentionally to minimize taxes. This might include:

• Timing the sale of appreciated assets to manage capital gains
• Using legal tax shelters to defer or reduce taxes
• Structuring real estate investments for depreciation advantages

This type of planning often benefits those with complex financial situations or multiple income streams.

Marginal Tax Planning

Marginal tax planning focuses on your marginal tax rate, the rate you pay on your next dollar of income. Key considerations include:

• Strategizing bonus payments or freelance income
• Timing retirement withdrawals carefully
• Managing investment income to stay within favorable tax brackets

Marginal tax planning can help lower your overall tax rate and help you retain more of your earnings.

Steps to Take When Planning Your Taxes

Good tax planning starts with a few key steps:

• Assess Your Financial Situation – Begin by reviewing your income, investments, and financial goals. This helps identify potential opportunities for tax savings.
• Set Clear Goals – Tax planning should align with your long-term financial goals—whether it’s maximizing retirement savings, buying a home, or reducing your estate tax burden.
• Identify Tax-Saving Strategies – We’ll help you explore strategies such as tax-deferred retirement accounts, tax-free investments, and other methods to reduce your taxable income.
• Implement the Plan – Once we’ve developed a strategy that suits your needs, it’s time to implement it—whether that’s adjusting your investment portfolio, contributing to retirement accounts, or taking advantage of tax deductions.
• Review and Adjust – As your financial situation changes, so should your tax strategy. We’ll regularly review your plan to make sure it’s still aligned with your goals and any updates to tax laws.

Common Mistakes to Avoid While Tax Planning

While tax planning is critical, there are a few common mistakes people often make:

• Procrastination – Delaying your tax planning can limit your options and reduce your ability to make meaningful adjustments.
• Overlooking Changes in Tax Laws – Tax laws evolve, and staying informed is important. Changes could affect your current strategy, so it’s important to adjust accordingly.
• Ignoring Deductions and Credits – Many taxpayers miss out on available deductions or credits, which can significantly lower their taxable income.
• Neglecting Estate Planning – Estate taxes can be substantial. Failing to plan can result in significant tax burdens for your heirs.
• Lack of Investment Diversification – A concentrated portfolio can increase your tax burden. Diversifying your investments helps to manage both risk and tax implications.

Why Choose Cohen Investment Advisors?

Choosing Cohen Investment Advisors for your tax planning needs means getting a planning partner who is committed to understanding your unique situation. We take the time to listen to your goals and work with you to create a plan that minimizes taxes and helps you achieve your financial objectives. Here’s why clients in Bedford, NH, and beyond, use us for their tax planning:

• Personalized Service – We focus on building relationships, not just managing finances. By getting to know you and your financial situation, we can create a tax plan that fits your goals.
• Comprehensive Approach – We offer a wide range of tax planning services, from investment tax planning to retirement and estate tax planning, so you can address all your financial needs in one place.
• Local Knowledge – With deep knowledge of the tax landscape in New Hampshire and surrounding areas, we help your plan work within the specific tax laws of the region.
• Proactive Planning – We stay ahead of tax season by helping you plan year-round. This proactive approach can optimize your financial situation.

Contact Us Today for Tax Planning

Reach out to Cohen Investment Advisors now for tax planning advice and begin your journey to a more secure financial future. Tax planning doesn’t have to be confusing or stressful. With the right guidance, it can become a powerful tool to help secure your financial future. We offer personalized tax strategies that make sense for your situation. Contact us today to schedule a consultation and start building a tax plan that works for you.