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)



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