Eric Felsenfeld’s Guide to Reducing Taxes and Building Wealth

1. Eric Felsenfeld’s Step-by-Step Guide to Tax-Efficient Financial Planning In today's economic environment, financial planning is more than simply increasing money; it is also about doing it intelligently and strategically. Smart planning may make a major difference in tax management. Taxes can quietly erode even well-performing portfolios if not handled with care. That’s where experts like Eric Felsenfeld step in. His areas of expertise include client design of long-term, tax-efficient plans for asset creation, retirement planning, estate planning, and intergenerational wealth transfer. Based on both technical expertise and pragmatic understanding, Felsenfeld's individualized strategy provides customers with a clear road map toward their objectives free from needless tax load. In this article, we’ll walk through Eric Felsenfeld’s step-by-step guide to tax-efficient financial planning and explore how each element contributes to a stronger, more resilient financial future. Step 1: Define Clear Financial Objectives The starting point for any successful financial strategy is clarity. He says that writing down your short- and long-term goals is very important, not only for making a plan but also for saving money on taxes. Whether you're saving for retirement, paying for your kids' college, buying a second home, or leaving a charitable legacy, your goals affect how long you spend for, how much risk you're willing to take, and how much income you need.

2. By setting these goals early on, Felsenfeld makes sure that tax planning is part of the overall financial plan and not something that is added on at the last minute. Step 2: Leverage Tax-Advantaged Accounts Maximizing contributions to tax-advantaged accounts is one of the most effective methods to accumulate wealth while reducing taxes. Felsenfeld assists customers in taking maximum benefit of 401(k)s, Traditional and Roth IRAs, 403(b) plans, and Health Savings Accounts (HSA). Each of them has unique tax advantages, such as pre-tax contributions, tax-deferred growth, and tax-free exits. For example: ● Traditional 401(k) contributions lower taxable income now while growing tax-deferred until retirement. ● Roth IRAs provide for tax-free withdrawals throughout retirement, which is a significant advantage for people who plan to be in a higher tax rate later in life. ● HSAs offer three tax advantages: payments are not taxed, growth is tax-free, and withdrawals for certain medical costs are tax-free. Eric ensures that his customers understand how to effectively manage contributions throughout various accounts depending on their income levels, predicted tax rates, and retirement dates. Step 3: Design a Tax-Aware Investment Strategy Tax-efficient planning requires careful consideration of both investment selection and asset placement. Felsenfeld guides clients in choosing investments not only based on expected returns and risk but also on their tax treatment. For example: ● Tax-advantaged assets, such as ETFs and local bonds, may work better in taxed funds. ● Actively managed funds that make a lot of taxable income or gains can be put in tax-deferred accounts like 401(k)s or IRAs. By aligning asset type with account type, Felsenfeld helps reduce the annual tax drag on portfolio returns—a difference that can add up significantly over the years. Step 4: Employ Tax-Loss Harvesting Tax loss harvesting is another approach in Felsenfeld's toolbox. This entails selling failing assets for a loss to balance capital gains from other investments or up to $3,000 in ordinary income each year. It's a delicate method that must be properly conducted to avoid invoking wash sale regulations (which might reject the deduction). Eric works with clients to methodically assess portfolios and discover chances to harvest losses when appropriate, all while keeping the overall investment plan intact.

3. Step 5: Make Tax-Smart Charitable Contributions For charitably inclined clients, Felsenfeld helps maximize the impact of their generosity through tax-smart giving. One powerful method is donating appreciated assets—such as stocks or mutual fund shares held for over a year—directly to qualified charities. This accomplishes two things: 1. The donor avoids paying capital gains tax on the appreciation. 2. They receive a charitable deduction for the fair market value of the asset. For customers over 70 1⁄2, Qualified Charitable Distributions (QCDs) from IRAs may meet RMDs without increasing taxable income. Felsenfeld integrates these options into comprehensive financial plans that honor both philanthropic and financial goals. Step 6: Plan for Intergenerational Wealth Transfer Estate planning is important not only so that you can leave assets to others, but also so that you can do it quickly and the way you want. He is an Accredited Estate Planner®. As such, he helps his clients make personalized estate plans using tools such as wills, revocable and irrevocable trusts, and their names. In order to lower estate tax risk, he also gives advice on giving methods that use yearly and lifetime deductions. Trusts that are set up correctly can also protect assets from being taxed too much and make sure that children get all of their family's hard-earned money. Step 7: Collaborate with Tax and Legal Professionals While financial advisers may offer tax solutions, proper implementation often requires consultation with CPAs and estate lawyers. Eric promotes a team-based approach, collaborating with a client's accountant and legal experts to guarantee that every aspect of the plan is carried out precisely. This comprehensive approach decreases the likelihood of tax mistakes and guarantees that legal, financial, and tax factors are all in sync. Step 8: Revisit and Revise Regularly Tax laws change. The same is true for markets. As do people's lives. Eric Felsenfeld fosters long-term partnerships that allow for constant modifications, whether it's a career move, marriage, childbirth, or a shift in financial priorities. Annual or semiannual reviews are critical components of the process, ensuring that all aspects of the financial plan are current and tax-efficient in real time. Step 9: Educate and Empower Clients What actually distinguishes Eric Felsenfeld is his concentration on education. Rather than merely giving them a plan, he guides customers through each choice, explaining the "why"

4. behind each tactic. By doing so, he enables his customers to take an active part in their financial destiny. Clients gain clarity and confidence not just in their portfolio, but also in their financial understanding, thanks to individualized assistance, one-on-one interactions, and access to online planning tools. Final Thoughts: Trusted Guidance for the Long Haul Tax-efficient financial planning is not a one-time task—it’s a lifelong discipline that requires expertise, consistency, and adaptability. Eric offers just that. With decades of experience, a client-first philosophy, and deep knowledge of both the markets and the tax code, he provides a steady hand in an often unpredictable world.