CS 3.docx - Financial Planning Case 3 Chapter 3 Case in...

Financial Planning Case 3
Chapter 3 “Case in Point” – Questions 1-3:
 Eric’s Major Financial Concerns: An effective tax strategy is vital for successful financial
planning. Eric’s main financial concerns include growing the investment fund he has created
for his two young children’s college funds and his own retirement. The past few years have
required Eric to pay an additional amount in taxes in April, a burden which he should seek to
remove and instead gain a tax refund at that time.
 Ways Eric Might Improve his Tax Planning Efforts: Eric should know current tax laws as
they affect him, maintain complete tax records, plan purchases and investments to reduce his
tax liability, and practice tax planning. Eric should practice tax avoidance, or legitimate
methods to reduce his tax obligation. To minimize taxes owed, Eric should accelerate
deductions and delay the receipt of income if he expects to have the same / lower tax rate