Tax planning is not something we do in April. It is woven into every recommendation we make throughout the year — from which account to draw from, to when to harvest losses, to whether a Roth conversion makes sense this year. Proactive tax strategy is one of the most valuable services a financial advisor can provide.
Tax Planning Services
- Roth conversion analysis — Year-by-year modeling to determine optimal conversion amounts, especially during low-income years, early retirement, or before RMDs begin
- Tax-loss harvesting — Systematic harvesting of losses to offset gains and reduce current-year tax liability, with wash sale compliance
- Asset location optimization — Placing tax-inefficient assets (bonds, REITs) in tax-deferred accounts and tax-efficient assets (index funds, municipal bonds) in taxable accounts
- Charitable giving strategy — Donor-advised funds, qualified charitable distributions (QCDs), appreciated stock donations, and bunching strategies
- Capital gains management — Timing of asset sales, gain/loss netting, and long-term vs. short-term optimization
- Required minimum distribution (RMD) planning — Strategies to reduce future RMDs and their tax impact through proactive Roth conversions and charitable distributions
How We Work with Your CPA
We do not prepare tax returns. What we do is provide your CPA with the information and strategy they need to maximize your tax efficiency. We share year-end tax planning summaries, coordinate on estimated tax payments, and ensure your investment strategy and tax strategy are fully aligned. If you do not have a CPA, we can recommend several in the Chicago area who work well with our clients.
Why Tax Strategy Matters
Over a 30-year retirement, the difference between reactive tax filing and proactive tax strategy can be worth hundreds of thousands of dollars. Small decisions — converting $50,000 to Roth in a low-income year, donating appreciated stock instead of cash, harvesting losses during a market downturn — compound over time into significant wealth preservation.
