Types of Authority
Tax planning should focus beyond tax savings and pursue goals related to wealth maximization, client objectives, suitable risk, suitable investments and effective use of time horizons.


Understanding Tax Avoidance vs. Tax Evasion:
Tax Evasion The reduction of taxes through illegal means (fraud, failure to report, etc.)
Tax Avoidance – The act of working within the legal limits of the law to minimize tax liability through the use of various financial and tax planning tools.

Understanding Tax-Free, Taxable and Tax-Deferred:
Tax-Free Income that never incurs a tax liability (e.g., tax-free municipals)
Taxable Income that is subject to federal income tax (e.g., interest from corporate bonds)
Tax-Deferred – Income that is sheltered from income tax until a later date (e.g., securities purchased in a traditional IRA account, annuity or 401k plan)

Primary Authority

Related Articles
  1. Taxes

    Tax Haven Vs. Tax Shelters: Is There a Difference?

    Learn about the difference between tax havens and tax shelters, and how both are used to reduce tax liability or avoid paying taxes altogether.
  2. Taxes

    Minimizing the Amount of Income Tax You Owe

    The amount of income you receive and tax deductions and credits you take impact how much you'll owe.
  3. Taxes

    5 Tax-Efficient Portfolio Tips for High Income Earners

    High income earners can use these tips to make their portfolio more tax-efficient.
  4. Financial Advisor

    3 Federal Income Tax Facts You Didn't Know

    Learn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
  5. Taxes

    Preparing for Potential Tax Policy Changes

    Here is a comprehensive guide to tax planning in an environment where policies could dramatically change under new leadership in Washington.
  6. Taxes

    8 Ways to Minimize Taxes Now and in the Future

    Here are eight ways to cut back your personal taxes.
  7. Taxes

    Taxes: Who Pays And How Much?

    When it comes to taxes, the debate is endless on who pays what, especially in Congress. With no new initiatives in sight, let's take a look at who is paying now.
  8. Taxes

    How Tax Cuts Stimulate the Economy

    Learn the logic behind the belief that reducing government income benefits everyone.
  9. Financial Advisor

    How to Best Navigate Taxes in Retirement

    Here's a rundown on tax strategies that can help extend the life of a nest egg.
  10. Insights

    How Fortune 500 Companies Avoid Paying Income Tax

    President Donald Trump is not alone in not paying taxes.
Frequently Asked Questions
  1. How does the price of oil affect the stock market?

    Read about how the price of oil might impact the stock market and why economists have not been able to find a strong correlation ...
  2. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ...
  3. How does Twitter (TWTR) make money?

    Learn how Twitter earns revenue, including the company's use of three targeted advertising streams and data farming and licensing.
  4. I'm about to retire. If I pay off my mortgage with after-tax money I have saved, I can save 6.5%. Should I do this?

    Only you and your financial advisor, family, accountant, etc. can answer the "should I?" question because there are many ...
Trading Center