Income Tax Efficiency | Charlie Horonzy

Catholic Money Mastermind - Financial Planning conversations with Catholic CFP® Practitioners

We’re all going to pay taxes, but knowing how the system works can prepare us for retirement with a little more money in our savings accounts. Today’s guest, Charlie Horonzy, returns to discuss the ways we can use the tax code to our advantage. We discuss how tax planning is one of the most critical aspects of financial planning, how much better retirement can be when well-planned for, and when you should be paying taxes now vs later. Charlie gives some great examples of how the Tax Cuts and Jobs Act can benefit different people depending on their tax bracket and why an emergency fund is an important part of tax planning. Near the end of the episode we discuss why your planner and your accountant must be communicating, in order for you to get the best deal on your taxes - without any surprises. This episode is a great listen for anyone ready to dig a little deeper into their tax plans.
Key Takeaways:
• How saving a few percentage points on taxes each year will pay off in the long run.

• Should you pay taxes now or later? And what savings plans are going to be right for your situation?

• How different accounts and careful reading of documents can save you a lot of pain.

• Why you should ensure your accountant and your financial planner are communicating.

Key Timestamps:
(00:00:00) - Introduction
(00:01:33) - Financial Planning is Tax Planning
(00:06:23) - Taxes Now or Taxes Later?
(00:10:17) - Tax Cuts and Jobs Act
(00:15:12) - Tax Planning for Retirement
(00:21:02) - How to Adapt Savings to Taxes
(00:23:40) - How to Plan for Changes of Plan
(00:28:22) - Emergency Funds for Tax Surprises
(00:32:02) - The Backdoor Roth
(00:35:10) - Your Planner and Accountant Need to Collaborate
(00:37:49) - Charlie’s Closing Comments
Key Topics Discussed:
Catholic Financial Planning, Catholic Financial Advisors, Catholic Money Mastermind, Faith, Finance, Tax Cuts and Jobs Act, Roth IRA, 401k, tax deferred
Mentions:
Website: https://www.focusedupfinancial.com/
LinkedIn: https://www.linkedin.com/in/charles-horonzy-cfp%C2%AE-cpa-8802b910/
More of Catholic Money Mastermind:
Catholic Money Mastermind Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.