When it comes to a financial strategy to guarantee your financial security, there is the need to ensure that your chosen financial advisor is abreast of the latest trends which will ensure that you continuously stay well afloat and financially balanced.

While some people earn huge amounts of money, they may remain financially unprotected and unstable as a result of the financial choices and advices rendered by their advisors.

To ensure that you keep more of your money, below are some of the financial strategies from Carson Wealth Management that are advised that you set in motion:

1. Determine the Type of Investment Vehicles You Should Use

As an investor, at the stage where you set up your account, there are several options available to you which presents their pros and cons. While you may choose to opt for a tax-deferred account where you pay tax later following the withdrawal of the money, you can also choose the option of a tax-free account where the tax is deducted upfront and the money is grown tax-free.

In determining the best option of the two, there is the need to place proper consideration on the characteristics and time frame of the investment you are to make. In the event you would be making a short term investment such as the purchase of a house or car, then, you may choose the taxable account. On the other end of the line, if you are looking to make a long term investment like a retirement plan, then choosing a tax-free account is more recommended.

2. Tax Efficient Ways to Invest

While there are several ways to invest your money, there is the need to place proper consideration on the effect of tax on the investment move you are about to make. With mutual funds also having tax ramifications, there is the need to understand that the buying and selling of mutual funds by your investment manager also attracts tax ramifications.

Choosing an active manager who is consistently buying and selling will accrue to you high capital gains at the end of the year meaning higher tax. While you do not want to invest more money before the issuance of capital gains because of higher tax rates, there is the need to consider the dividends side.

There are two types of dividends, the qualified dividends and non-qualified dividends. Stocks which qualify as qualified dividends attracts lower tax rates as compared to the non-qualified dividends which are taxed at the ordinary rates. It is recommended that you consult with your financial advisor on the best option to choose.

3. High-Cost Tax Method

When making an investment choice, you get to choose a type of tax method. One of the tax methods available is the high-cost tax method. While several people make use of the average cost method which means a decision to sell funds later on will attract gains which will be calculated using the average cost method, the higher cost tax method presents added advantages in that the final money accrued is higher.

4. Tax Loss Harvesting

While many people do their tax loss harvesting at the end of the year, it is recommended that it be done throughout the year as the investments which you have made will make gains and losses during the course of the year.

5. Lowering the Tax Bracket Near/In Retirement

This strategy can be put in motion at the later stages of your life. This is mostly applicable to persons who have invested in a tax-deferred account. Such persons are qualified to get the benefit of building their investments tax-free until withdrawal. The government however wants a required minimum distribution at age 70 thus making the 401K account and social security qualified to enjoy this benefits.