- 50 percent with a plan treat tax time as an opportunity to address their overall financial situation, compared to 31 percent who don't have a plan.
- 41 percent with a financial plan feel "extremely confident" in preparing their taxes compared to 25 percent who don't have a plan.
- Among investors who incorporate tax planning into their financial plan, nearly half (48 percent) feel "extremely confident" as they prepare their taxes.
- 42 percent are "extremely confident" in preparing their taxes, compared to 31 percent who don't use an advisor.
- 66 percent with an advisor believe they're doing all they can to reduce the tax impact of saving and investing, compared to 48 percent without an advisor.
Room for improvementAccording to the survey, there's also room for improvement when it comes to investors' approach to tax planning. Over the course of the year, just 29 percent of those surveyed pay attention to the impact of taxes in their investment portfolios; only 15 percent use tax loss harvesting to minimize the impact of investment-related taxes; and just 21 percent include charitable contributions as part of a tax planning strategy. Although tax efficiency can be a key factor in estate planning, only 19 percent of investors take the opportunity to develop or assess estate plans when reviewing their tax documents for filing. "Tax planning shouldn't just be a seasonal activity for investors," notes Vietri. "Taxes can have a significant impact on portfolio returns, which affects progress toward achieving long-term goals, so it should really be an ongoing focus." Most investors expecting a refund plan to save it Fifty-nine percent of survey respondents expect to receive a federal tax refund this year. Of those:
- 49 percent plan to use their refund to save.
- 34 percent will pay off debt.
- 27 percent will invest.
- 23 percent say they will buy something special for themselves or someone else.
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