Your tax return and investments are more related than you may realize. Using a coordinated approach may add additional value in the form of tax savings.

Those tax savings can lead to more growth in your portfolio over time. After all, it isn’t what you make, it’s what you keep that’s important.

Looking at your Form 1040, here are some of the lines directly impacted by your investments and financial planning:

Line 7: Wages, Salaries, tips, etc… (part of your financial plan)

Line 8 a&b: Interest (from investments)

Line 9 a&b: Dividends (from investments)

Line 13: Capital Gains (from investments)

Line 15: IRA Distributions (part of your financial plan)

Line 16: Pensions & Annuities (part of your financial plan)

Line 20: Social Security Benefits (part of your financial plan)

Line 25: Health Savings Account Deduction (part of your financial plan)

Line 28: Self-employed SEP, SIMPLE, and Qualified Plans (part of your financial plan)

Line 32: IRA Deduction (part of your financial plan)

Line 40: Itemized Deductions (part of your financial plan)

We focus on what we can control. We don’t know what the markets will do, but we know managing the portfolio in a tax aware manner will minimize your taxes.

Now that you see how intertwined your taxes and financial plan are, doesn’t it make sense to hire a professional who can integrate your planning together?