need a tax planning financial advisor?
tax planning to manage your tax burden
tax planning strategies
A HOLISTIC APPROACH GOING BEYOND NUMBERS
Your Team Hewins advisor can help you manage all of your finances to reach your goals.
Finding tax planning strategies to reduce the amount of taxes you pay is key. We work to identify various tax and financial planning opportunities to help minimize your taxes. Your advisor can help you:
- Pursue tax efficient distribution planning.
- Choose investments that are tax efficient.
- Structure your charitable gifting strategy to optimize deductions.
- Implement other financial tax planning strategies related to education funding, retirement plans, and health savings accounts.
- Stay on top of regulations and tax laws that may impact your financial plan.
We’re here to help.
teaming with your CPA
STRATEGIC PARTNERSHIPS
Your Team Hewins financial advisor will work with your CPA to help ensure that your tax strategies support your overall financial plan.
We can refer you to a CPA if you don’t have one.
Either way, we’ll work with your CPA to:
Building a secure financial future is a priority for many, and tax planning can be a powerful tool you might be overlooking. If it still needs to be part of your wealth management strategy, it’s never too late to explore the benefits.
Whether you’re saving for retirement or your child’s education, tax planning with a financial advisor can help you reach your financial goals and may help you keep more of your hard-earned money.
We understand everyone’s situation is unique. Reach out today to learn more about how we can help!
the Team Hewins approach to tax planning
Financial planning and tax services go hand in hand. While your CPA works with you to help reduce your tax liability, we provide you with a much broader perspective.
Together, we’ll consider how taxes affect your financial plan so that adjustments can be made to optimize your plan while keeping tax implications in mind.
Here are some important areas where we can help with financial tax planning:
Investments
- Ensure that your investment strategy fits well with your overall financial plan.
- Provide tax-managed portfolios geared toward minimizing taxes (specifically non-retirement).
- Strategize to reduce concentrated positions with taxes in mind.
- Avoid realizing costly short-term gains with our long-term investment strategy.
Charitable Gifts
- Help you determine the most tax-efficient ways to donate.
- Propose strategies to maximize deductions.
- Advise on the respective benefits of donor advised funds (DAFs), gifting appreciated securities, and qualified charitable distributions (QCDs).
Education Planning
- Advise on strategies to save for your child’s education.
- Determine how much you will need to save to fund your child’s college tuition.
- Provide guidance on tax-efficient savings plans for college and private school, including 529 plan accounts that grow tax-free if used for qualifying expenses.
Retirement Planning
- Help determine how much you need to save for retirement, which could also lower your tax bill.
- Help you consider which type of retirement account makes the most sense for your situation.
- Suggest the most tax efficient ways to save and withdraw funds.
Estate Planning
- Recommend gifting strategies during your lifetime to help reduce your taxable estate.
- Review beneficiaries to ensure your estate is tax-free.
- Provide advice on the latest changes to the lifetime estate and gift tax exemption.
see the big picture with clarity
Steady guidance to move forward confidently
Tax planning is just one piece of your financial picture. Knowing what’s ahead and planning for it are essential to successful financial planning.
Our proprietary Smart Life Planning process provides you with a personalized, long-term view of your financial needs. Once we get to know you, we’ll guide you toward a comprehensive financial plan that’s tailored precisely to you.
We’ll also help you clarify your goals and lead you down the path toward financial wellbeing.
benefits of using a financial advisor for tax planning
Financial advisors and qualified tax professionals are typically most effective for their mutual clients when working in partnership. By closely collaborating on tax and financial planning services, your advisors can help you:
- When tax planning and wealth management professionals consistently communicate with one another, they stay on top of changes that could have significant tax and financial ramifications.
- Collaboration ensures they are up to date on important changes for income tax planning (based on changes in employment, Social Security benefits, investments, etc.). Having an accurate idea of income helps you to pay the right amount of estimated taxes and select the level of tax management that’s right for your portfolio.
- Identify and assess new financial planning opportunities as your personal finances and tax situation evolve.
- Decide which retirement plan is best for you – such as traditional or Roth 401(k)s, traditional or Roth IRAs, or deferred compensation plans.
- Collaborate on stock option compensation planning decisions, such as when to exercise incentive stock options, and then whether to hold or sell the options.
- Implement tax planning strategies that lower your tax liability and enhance tax efficiency.
- Take advantage of asset location to optimize tax efficiency.
- For higher-income earners, consider investing in tax-free municipal bonds rather than traditional corporate bonds in your non-retirement investment accounts.
- Consider strategies such as investing in tax-managed mutual funds and ETFs in taxable investment accounts.
- Leverage tax-loss harvesting across your portfolio.
- Capitalize on tax-effective wealth building with a Backdoor Roth.
- For those who are charitably inclined and taking Required Minimum Distributions (RMDs), you may be able to use Qualified Charitable Distributions (QCDs) to reduce your income more than if you made an outright cash contribution. This strategy can potentially help you avoid jumping into a higher tax bracket, which also affects your Medicare premiums.
get started on tax planning now
TAX PLANNING ISN’T JUST FOR TAX TIME
Planning effective ways to manage your finances and minimize your annual tax bill is key to the success of your financial plan.
In many cases, it’s best to implement these tax planning strategies before a financial transaction (like buying or selling investments) takes place or your taxes are due, so start planning now!
Next: Choose a time that works well for you, and our relationship manager, Luke Hayes, will be in touch with you to personally understand your needs and prepare for the “Big Decision Clarity” session. Let’s turn this complex decision into your next confident step forward.
Additional info:
Learn more about our team | approach | frequently asked questions
Book your clarity session today!
(We’ll reserve 45 minutes to address your most urgent questions)
tax planning service FAQ
Q: What role should tax planning play in my total financial plan?
Q: When should I think about tax planning?
Q: Can tax planning help me keep more of my earnings?
Q: Can tax planning help me reduce risk or offset gains?
A: Yes. When markets decline, there may be opportunities to harvest losses (also known as tax loss harvesting). These losses can then be used to offset gains from rebalancing a non-retirement account to a lower target asset allocation or diversify away from concentrated holdings, both of which reduce risk.
Additionally, managing retirement and non-retirement accounts together towards one target allocation can potentially reduce or even eliminate taxable gains when rebalancing to a lower target asset allocation.
Q: What tax planning services does Team Hewins offer?
Q: Do financial advisors help with taxes?
tax planning tips and resources
HERE IS SOME HELPFUL INFORMATION ON TAX PLANNING
SECURE Act 2.0: How Will the New Provisions Impact Your Financial Planning?
MMAs part of the 2023 fiscal year federal spending bill, the changes for SECURE Act 2.0 for 2024 is increasing the maximum amount you can make in catch-up contributions each year based on your retirement account. Congress passed the Setting Every Community Up for...