Carlos Dias Jr. | Source | Financial Advisor at Dias Wealth

Reduce taxes with charitable planning.

With a charitable trust, the consumer donates appreciated securities including stocks, bonds, and funds, without paying any capital gains tax,” says Carlos Dias Jr., a wealth advisor in Orlando, Florida. If an investor sells $100,000 worth of appreciated stock that was originally worth $25,000, that person would owe capital gains tax on $75,000. If someone donated the appreciated stock to a charitable trust, the $100,000 would go to a charity that would sell the stock, while the investor incurs no capital gains tax liability. Depending upon the type of trust, the investor receives income from the trust and a tax deduction during the next five years after the gift is bequeathed, Dias says.

It Can Help People Better Conceptualize Their Budgets

“In my opinion, everyone’s scenario is different but most people like to conceptually visualize things, and that’s where this rule works,” said Carlos Dias Jr., a financial advisor with Dias Wealth.

"The important factors when choosing fixed-income investments include risk tolerance, the amount of time the investment will be needed and tax treatment," says Carlos Dias Jr.