Tax planning isn’t just about filing yearly returns; it’s about gleaning the savings and benefits available when your financial decisions are aligned with tax planning. From equity compensation, job changes, retirement planning and selling rental property to navigating life transitions like divorce/marriage, having children or death of a loved one — proactive tax planning may help you avoid costly surprises and align your money decisions with your bigger life goals.

Let’s look at why tax planning deserves a front-row seat in your financial plan.

How Should You Consider Taxes in Your Financial Planning?

Your financial plan is more than just a budget or investment strategy—it’s a comprehensive roadmap designed to guide you through each stage of life. Tax planning plays a central role in that journey.

Strategic tax planning considers various options and eliminates surprises. Without it, you may be missing key opportunities to keep more of what you’ve earned. It involves looking ahead—not just reacting to your most recent tax return. For example, will you have more income this year or next? Are there ways to reduce capital gains before selling a property? Does a house move, purchase or sale change your taxes?

These questions don’t have simple, one-size-fits-all answers. Your tax strategy depends on your overall goals, timelines, income sources, and lifestyle priorities. That’s why it’s important to view tax planning as part of your long-term financial roadmap that shifts over time in alignment with your goals.

Tax Planning Through Life’s Transitions

It can be shocking how much your tax picture changes after a major event—like a promotion, divorce, selling a property or moving to a different state, or receiving an inheritance—until it’s too late to plan for it. For us, tax planning isn’t an afterthought, it’s a part of how we help clients align their financial decisions with their goals and values. We ask forward-looking questions, model different scenarios, and identify ways to minimize tax impact across the years—not just in the current one.

Especially during life transitions, it’s helpful to have a guide who can connect the dots: someone who sees how an inheritance might affect your tax filing, or how retirement income should be structured for tax efficiency. That kind of holistic thinking can lead to more confident decisions—and less stress.

What Does the 2025 Tax Bill Mean for You?

The newly passed legislation as of July 4, 2025—referred to as the “One Big Beautiful Bill”—brings changes that could impact your financial picture. From higher deduction for those 65+ to lower federal student loan limits and fewer tax breaks for dependents, this bill underscores why it’s important to have a plan in place.

Here’s a breakdown of the bill (via IRS News).

Real-life Tax Planning Needs

Tax planning can help create flexibility and sustainability in your financial life. Here are a few examples of how tax strategies can be incorporated into a financial plan:

• Retirement income design: Evaluating which accounts to draw from and when allows for tax efficient income. This includes when to draw Social Security, when to draw a pension or whether to elect a survivor benefit.
• Roth conversions: Determining whether and when to convert traditional IRA funds to a Roth IRA, particularly in lower-income years or prior to your Required Minimum Distribution age.
• Capital gains planning: If you’re selling a rental property or other investments, we look at timing, income thresholds, and potential offsets to reduce your tax exposure.
• Charitable giving: For clients who are philanthropically inclined, we evaluate strategies like donor-advised funds or qualified charitable distributions that can provide tax benefits.
• Withholding and estimated taxes: We help understand your estimated taxes and plan for tax payments or changes to withholding amounts to avoid surprises, especially when income sources are changing.

A Partner in Planning

Tax planning as part of your larger financial plan offers you peace of mind and supports your broader goals, whether that’s maintaining your lifestyle in retirement, funding your child’s education, or giving generously to causes you believe in.

We believe in helping clients make confident decisions in every chapter of life, and we do that by building a financial plan that includes tax planning.

If you’re curious about how tax planning could fit into your financial picture, we’d love to connect. Reach out so we can help you see the possibilities.