Tax Saving Strategies

The Concept of the Four Tax Buckets 

At some point in your life, if you have accumulated assets, you may consider using your wealth to help others. Whether that’s a child, a parent, a friend or a charity, there can be great emotional reward in making a wealth transfer to someone, or something, in need.

As we flip the page to December, we often turn our attention to shopping, holiday parties, gift giving and family gatherings. It may seem like just yesterday you were planning your 4th of July, or your week long summer vacation. Sure enough though, Thanksgiving has passed, electric bills are skyrocketing from all the lights and Christmas carols are playing 24/7 on the radio.

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My experience tells me that many grandparents want to help fund college education for their grandchildren, particularly if they already have enough money to ensure a comfortable retirement income for themselves.

No, this isn’t a political prediction on who’s going to win the White House and what they might say about your taxes. And no, I’m not claiming that there will be massive tax law changes that will drastically change the way you pay taxes on your savings. I am concerned you may not fully understand your savings options.

I came across a situation recently that might be more common than I wish it were.