Matthew 22:21 tells us, “…give to Caesar what is Caesar’s, and to God what is God’s.” And so right out of the gate, I want to say that those who are paying high taxes may not be bad stewards of their material resources. In fact, Ron Blue says it well when he says that taxes are a reflection of God’s provision in our life, and for that we should be thankful. That said, a lack of financial planning – and this includes tax planning – can demonstrate a serious lack of stewardship.
At Capstone, we work with clients to help them utilize tools that can save them taxes. Practically speaking, that might simply mean that we help implement strategies initiated by their accountants or lawyers. At other times, it may mean discussing and exploring tax-saving opportunities such as the location of various investment products, or utilizing a strategically planned giving vehicle, such as a personal foundation.
Overall, having a financial plan is the first step to answering many tax questions that often include: Are my investment assets structured in the most tax-efficient way? What tax liability is my estate going to be subjected to? From a legal and estate planning perspective, are my fixed assets, such as businesses or real estate, as tax efficient as they could be?
A financial advisor, financial planner or accountant can help sort through these types of tax planning questions. In the end, you may not be able to provide much relief from your tax obligations, but you will have endeavored to try, and that is ultimately your stewardship responsibility in utilizing your resources wisely.
Maria Dawes, Portfolio Manager
Capstone Private Wealth