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Why Holistic Financial Planning Needs to be Tax-Intelligent

Why Holistic Financial Planning Needs to be Tax-Intelligent

August 11, 2023

We believe quality financial planning powers your quality of life. And to be truly comprehensive, financial planning must be tax intelligent. Tax implications accompany nearly every financial decision you make, which is why tax strategy and financial planning go hand-in-hand. Whether anticipating potential tax liabilities or leveraging newly available tax benefits, tax-saving strategies can be used to create better outcomes.

Below are three areas where a tax-intelligent approach is critically important.

Tax-Intelligent Investing

An investment portfolio should always be properly allocated, well-diversified, and regularly rebalanced, but returns can quickly be eroded by taxes if not planned for in advance. Tax-intelligent investing is important at all stages of life—from planning and accumulation to distribution and legacy—but becomes even more important as you near retirement. Tax-efficient investment products, strategically timed contributions and withdrawals, and tax-loss harvesting tactics can all help maximize your after-tax returns. While the goal of investing is to grow your assets, tax-intelligent investing can help you keep more of what you earn.

Tax-Focused Retirement Planning

You’ve spent decades working hard and deserve to retire with confidence in your long-term financial security. The goal of retirement planning is not only to provide a path to income stability but also to ensure you can maintain your quality of life in retirement. At Larson Wealth Planners, we work with clients to understand when you can comfortably retire and illustrate how factors such as taxes, inflation and cost of living will impact income when you do. Together, we’ll define what constitutes a uniquely fulfilling retirement and create your spending plan accordingly. Knowing what to expect—and what to look forward to!— when it comes time to retire will make the transition easier and put your mind at ease as you approach an exciting new chapter. We help map your journey so you can enjoy the ride.

Tax-Efficient Estate Planning

Leaving a legacy is a common goal for our clients, and many have questions about what happens when their estates are passed onto beneficiaries. While an estate planning attorney will draw up your legal paperwork, a tax-intelligent financial advisor is a valuable resource to maximize tax efficiency and enhance the impact of your legacy. We work with clients and their families to create plans, accounts, and other strategic solutions to ensure your legacy is passed on as intended with minimal tax liability. You can even arrange to support causes you care about through charitable gifts from your estate.

When choosing investments, preparing for retirement, or leaving a legacy for your loved ones, it’s crucial to work with experienced professionals who understand potential tax consequences or opportunities. These three areas are just a few of the concepts we address as part of holistic financial planning. Other topics we we’ll discuss include:

  • Education planning
  • Family risk management
  • Cash flow management
  • Business planning

Tax-intelligent financial planning is a tool that can connect you to financial confidence. If you’re eager to explore what’s possible, contact our office today.