A solid financial plan is not complete without taking into account the tax implications of your financial decisions.

While taxes should not be the only factor affecting your decisions, they should play an important role so you can potentially get the most from your investment. Regardless of the investment you are considering, there are tax smart strategies you can use to reduce, delay or eliminate taxes. Here are some tax smart strategies you should consider before you make your investment decisions.

Use this information to begin a conversation with your Financial Consultant about the impact of taxes on your investment decisions.

Buy And Hold
You can lower your taxes on any capital gain if you buy and hold the taxable investment for at least one year.

Invest For Growth
Tax-deferred investments are primarily used to achieve your growth goals. The power of tax-deferral becomes even more significant over long periods of time. That is why tax-deferred investments are often recommended for long-term growth goals.

If You Are An Active Trader, Use A Tax-Deferred Account
Frequently buying and selling securities in a taxable account can generate a great number of taxable events that can be both expensive and difficult to track. In a tax-deferred account, these problems are mitigated. Why? Because buying and selling inside a tax-deferred account such as a Rollover IRA does not create any taxable events. Of course, taxes are due on any gains when you withdraw your money from the account.

Invest For Income
For the portion of your portfolio that is focused on income, tax-free investments may prove the smartest approach. The after-tax returns often compare very favorably to other taxable income investments. And the federal, state or municipal backing can give you an additional measure of safety.

Selecting the Right Investment
The more money you save in taxes, the more money you have to invest and enjoy. Our Financial Consultants can review with you each investment option and the tax implication of each.

The Issue of Capital Gains
These strategies apply to both taxable and tax-free investing, but not to tax-deferred investing.

You can reduce the impact of taxes on many investments by holding them long enough to qualify for long-term capital gains treatment. More specifically, you need to hold investments for at least one year and a day before you sell. The benefit of long-term capital gains is that they are taxed at a lower rate than your ordinary income.

If you hold your investment less than one year, your gains are taxed at your ordinary income tax level.

All information is believed to come from reliable sources. Because tax laws can change frequently, please consult the current tax code or a tax specialist to become familiar with the most up-to-date tax laws. DFCU Financial Partners and their Financial Consultants through CUSO Financial Services, L.P. (CFS), our broker-dealer, are not tax experts and do not offer tax advice. Please consult a tax specialist for tax advice.

Reducing Taxes On Capital Gains By Matching Them With Capital Losses
While investment losses are generally to be avoided, you can turn a bad investment into a good tax move.

How? By matching capital losses with capital gains. If you have some capital gains, either long-term or short-term, you can reduce their impact on your taxes to the extent you have capital losses in the same tax year.

Consult a Financial Consultant for a complimentary consultation. Together you can build a tax-smart investment plan that is right for you.