One of the most rewarding parts of my work as a financial advisor is bringing together every available tool—investment management, retirement planning, and tax strategy—to help clients reach their goals efficiently and meaningfully.
Client Background
Todd and Charlotte are successful business owners who’ve each built strong, profitable companies. Combined, they project nearly $950,000 in income for 2025. Even after maxing out their SIMPLE IRAs and other deductions, their adjusted gross income (AGI) remained over $760,000, keeping them in the top federal tax brackets.
The Strategy: Tax Mitigation Through Charitable Investments
Working with their CPA, I introduced a creative tax mitigation strategy: investing in historic preservation easements. These programs support the restoration of historic buildings while offering investors significant charitable deductions.
For every $1 invested, clients can typically receive around $2.45 in deductions.
For Todd and Charlotte, a $150,000 investment produced $367,500 in federal deductions.
Layering State Tax Credits
To further enhance the plan, we added South Carolina state tax credits—$20,000 for Todd’s business and $6,000 for Charlotte’s—resulting in an additional $4,588 in state tax savings.
The Results
Together, these strategies lowered their effective federal tax bracket from 37% and 35% down to 32%, freeing up more cash flow for reinvestment, retirement, and charitable giving.
Why It Works
This type of planning isn’t one-size-fits-all. But for high-income professionals, entrepreneurs, and business owners, combining retirement savings, investment opportunities, and charitable giving can create a meaningful and measurable impact—both financially and personally.
If you’d like to explore how strategies like this can reduce your tax exposure and align your investments with your values, I’d love to connect.
P.S. – Here are a few things I am reading/listening/watching: