Tax deductions are a useful way to create hard dollar savings, but some tax deductions may cost you more money than they save. For instance, contributing funds to a traditional IRA provides an immediate deduction, but choosing a non-deductible Roth IRA can be exponentially more beneficial when you reach retirement. Other items to consider are the costs of a home mortgage versus the mortgage interest deduction, how earning more income effects your tax bracket, and if municipal bonds make the most sense for your income level.
At Brandywine Oak, we educate our clients on how to make long-term financial decisions that provide the most benefit to their individual situations. To learn more about this important topic, please read Advisor Prospective’s https://lnkd.in/gsG7i3Y.