What Are The Contrasts Between Short Term And Long-Term Tax Planning?

Walt Dallas: I think that’s a great way to say it because there is short-term tax plan, there’s long term tax planning. Short term planning is what we focus on with new clients, and we focus on that normally in the audit defense plan also as we tackle how to reduce taxes each time of the year.
Todd Mardis: A long term planning is more of a holistic look at where we are going to be, not only next year but 5 years, 10 years, even in retirement years and post-retirement. Long-term planning looks at your overall taxes on a yearly basis, as well as a long-term basis specifically when you retire, what is your tax rate going to be? We all believe giving recent events that taxes will increase.

Walt Dallas: And so, many people are using the infinite banking concept and while I don’t sell Life Insurance, I am a big fan of the Infinite banking because you can fund a policy and someday borrow the money out and use the money in 20 years. All the appreciation is going to come out to you is going to be tax free.

Todd Mardis: And it even can be long-term planning to the point where the state taxes are being planned for. If you are a successful person or you have a successful family business, long term, you need to look at whether the tax ramifications to your family when you are gone.