Matching Investments to Tax Savings Techniques

Course Description:

Taxes aren't taxes - they are dollars in terms of the net return on investment. All tax professionals need to know the tax-economics of investing for themselves and their clients. This need is accentuated by the rapid rise of the Internet as a broad-based and effective investment tool.

The tax professional is in a special position to detect a client's need for financial planning. Preparing returns discloses assets, savings, business entities, and family members. Knowledge of the client's assets, activities and the tax characteristics of available entities permit investment matching for maximum after-tax return.

The basic tax characteristics of the primary tax entities are explored and analyzed. Their ability to defer, reduce, and eliminate tax is examined. Client goals, purposes and risk tolerances are determined using the Sharp ratio. Investments and assets are then evaluated using a variety of tools found on the Internet. Finally, investments and entities are matched to produce the best after-tax return for the client.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Differentiate goals from purposes to better define investment planning.
• Clarify retirement planning direction, and discuss resource allocation including necessary generational changes.
• Develop and implement a financial plan to prepare for retirement.
• Compare and contrast eight active and two passive investment acquisition strategies.
• Apply selected tax elimination techniques.
• Maximize employer deductions and increase tax-free incentive-based compensation for employees.
• Value fringe benefits according to IRS regulations.