Tax strategy scan

One option for the higher earning spouse is to use an IRA as payment.

Even investors who aren’t ultrawealthy may be able to avoid income taxes on their investments with “off the rack” strategies similar to the specially designed life insurance contracts sold by some financial firms to ultrahigh-net-worth clients.

Clients should not only check the fees, but also compare their after-tax returns.

Reporting to the IRS can be complicated and boost preparation fees by as much as 300%.

Although designed to spur productivity, the Tax Cuts and Jobs Act could have the reverse effect.

While it offers a hefty tax deduction for pass-through income, an expert says the rules are a "convoluted mess.”

One strategy includes encouraging clients to wait until the age of 70 to start collecting Social Security benefits.

The effects are looking like "every other much-hyped tax cut of the past three decades.”

Although annuities incur taxes and costs, clients "can invest the same amount into a diversified municipal bond portfolio and pay no taxes,” an expert says.

Many are unaware that they are responsible for a majority of their medical expenses, aside from premiums and coinsurance costs.