Keep More of What You Earn: Smart Tax Strategies

Taxes can significantly impact your ability to grow and preserve wealth. Without a proactive strategy, a large portion of your hard-earned income, investments, and business earnings can end up in taxes instead of your pocket. At Tolbert Financial Group, we help clients implement smart, long-term tax planning strategies that legally minimize taxes while maximizing your savings and investment growth.

Whether you’re planning for retirement, growing a business, or building a legacy, strategic tax planning is essential. It’s not just about what you earn—it’s about how much of that wealth you get to keep and grow.

Retirement Accounts: Grow Tax-Efficiently

Retirement accounts are one of the most effective tools for building wealth while reducing your current tax burden. By contributing strategically to 401(k)s, IRAs, and Roth IRAs, you can take advantage of:

• Tax-deferred growth: Investments grow without being taxed until withdrawal, allowing compounding to work faster.

• Tax-free growth: Roth accounts allow contributions to grow and be withdrawn tax-free in retirement.

Example: Jane, a 35-year-old professional, maximizes her 401(k) contributions each year. By also contributing to a Roth IRA, she ensures part of her retirement savings grows tax-free. This strategic mix helps her balance taxes now with tax-free income later.

Tip: Review your retirement accounts annually to adjust contributions based on income changes, tax laws, and life events.

IUL Advantage: Flexible, Tax-Free Income

Indexed Universal Life (IUL) insurance isn’t just protection—it’s a powerful wealth-building tool. The cash value in an IUL grows based on market indices, and you can access it via policy loans or withdrawals tax-free.

Example: During retirement, John uses an IUL loan to cover home renovations without triggering a large tax bill. Meanwhile, his other investments continue growing, creating a flexible source of funds that complements his retirement income.

Tip: Think of an IUL as a personal “backup bank.” It provides liquidity for unexpected expenses, opportunities, or lifestyle needs without adding tax burdens.

Business Planning: Keep More of What You Earn

For business owners, taxes can quickly erode profits. Strategic planning ensures you keep more money in your business and personal accounts.

Key strategies include:

• Deductions & credits: Business expenses like software, travel, and office equipment reduce taxable income.

• Retirement plans for employees: Contributions can provide tax savings while benefiting staff.

• Tax-efficient business structures: Choosing the right entity (LLC, S-corp, etc.) can reduce personal tax liability.

Example: Sarah, an entrepreneur, implements a retirement plan for herself and her employees. She reduces taxable income while building retirement savings for both her and her team.

Tip: Regularly review your business structure and benefits to ensure you are maximizing tax efficiency as your business grows.

Long-Term Strategy: Integration is Key

The most effective tax planning happens when it’s holistic. Integrating retirement accounts, IULs, investments, and estate planning ensures every piece of your financial plan works together.

Example: A couple nearing retirement uses a combination of tax-deferred accounts, Roth conversions, and IUL withdrawals to create a tax-efficient income stream. They reduce overall taxes, maintain lifestyle flexibility, and leave a portion of wealth to their heirs efficiently.

Tip: Work with a financial advisor to align tax strategies with long-term goals, life milestones, and legacy planning.

Why Tax Planning Matters

Taxes aren’t just an annual obligation—they shape your financial future. Strategic planning allows you to:

• Reduce unnecessary tax burdens

• Grow wealth more efficiently

• Protect income for retirement and life goals

• Transfer wealth effectively to future generations

Getting started early and reviewing your plan regularly ensures you take advantage of every opportunity to minimize taxes legally while keeping your money working for you.

Take Action Today

Don’t let taxes eat into your wealth. Get a customized tax strategy designed to keep more of your money working for you. Contact Tolbert Financial Group today to start building a smarter, tax-efficient financial plan that grows with you.