Value of the Advisor

Tax-Smart Planning and Investing 

The goal of saving all those years is to eventually turn your investments into spendable money. But taxes can eat into how much you get to keep. Smart investment tax planning can help you keep more of your returns — sometimes adding nearly an extra 1% per year. Examples include:

  • Offsetting gains by selling certain investments at a loss (called tax-loss harvesting)
  • Holding tax-inefficient investments, like bonds or REITs, inside retirement accounts to lower yearly taxes (called asset location)
  • Choosing funds that are designed to limit taxable distributions
  • Holding investments longer to qualify for lower long-term capital gains rates
  • Planning Roth conversions in lower-income years to reduce future tax bills
  • Creating a withdrawal strategy in retirement that keeps your lifetime taxes as low as possible

Note: The impact of tax planning will vary. Clients with lower taxable income may see less benefit due to the structure of the progressive tax code.

Custom Cashflow Planning

A 2023 Herbers & Company study found that among nearly 1,600 investors with at least $250,000 in assets, the most in-demand services were Tax Planning and Retirement Planning.

How you take money out of your accounts in retirement — and when you claim Social Security — can make a big difference. Research shows that using smart withdrawal strategies can add up to 1.1% more per year to your retirement income. And according to William Reichenstein, CFA, combining withdrawal planning with Medicare and Social Security strategies can keep taxes in retirement very low — sometimes even near zero!

Choosing which accounts to draw from first, and when to claim benefits, could mean hundreds of thousands of dollars more over your lifetime. TAG Invest uses specialized software to help your advisor design a plan that keeps taxes down and your savings working longer.

Note: The benefits of withdrawal sequencing may vary. Clients with smaller qualified asset bases may require less planning in this area.

Beyond the Plan: Value Unlocked

Holistic advice is more than just building a one-size-fits-all portfolio or writing a static plan. It's an ongoing process of helping you keep emotions out of investing, make tax-smart choices, and design a custom cashflow strategy so your savings last longer.

Research shows this can add real, measurable value — sometimes around 5% a year. But the benefits go beyond numbers: in a 2023 global study by the Financial Planning Standards Board, 93% of people who work with a professional advisor said they feel more peace of mind and greater confidence in their financial decisions.

With the help of TAG Invest, your advisor can combine advanced planning tools with personal guidance to help you worry less, stay focused on what matters, and enjoy life knowing your money is working for you.