Smart Tax Planning and Retirement Account Reviews Save You Money, Time & Stress
Word Count: 478 words | Estimated reading time: 2 minutes
One of the biggest values a financial advisor brings is helping clients not only make smarter decisions with their money but also avoid costly mistakes that can eat away at their wealth. Taxes, fees, and inefficient strategies can quietly erode even the best-laid financial plans. In my practice, I often see opportunities to step in and save clients significant amounts of money, time, and stress simply by optimizing the choices available to them. Below, I’ll share two real-world case studies that highlight how thoughtful tax planning and a careful review of old retirement accounts can add immediate and long-term financial benefits.
1. Tax Planning for Large Capital Gains Sales
Clients often face tax surprises when selling highly appreciated assets like employer stock or crypto. For a high-earning married couple generating $100,000+ in capital gains, planning avoids triggering a 3.8% Net Investment Income Tax (NIIT) surcharge that applies beyond $250,000 income. We identify the optimal amount to sell without hitting that limit and strategize withholding and spending plans. Also, clarifying the purpose behind the windfall guides smart use of the proceeds.
Who benefits most?
Those with stock options, crypto, or large appreciated holdings.
High-income clients near NIIT thresholds.
2. Maximize Your Retirement Savings by Reviewing Old 403(b) Accounts
Many clients still hold old 403(b) retirement accounts, once called Tax Sheltered Annuities (TSAs), that often have high fees and limited investment options. One client, approaching retirement, was paying 1.75% in annual fees for mediocre investments in an annuity-based account. By rolling over this account into a low-cost IRA charging just 0.24%, we saved them more than $5,000 each year, freeing more money for growth. This rollover also allowed customized investments aligned with their retirement goals.
Who benefits the most?
Employees or former employees of nonprofits or tax-exempt organizations.
Pre-retirees over 55 paying high fees without realizing it.
Conclusion
These two examples show how proactive financial planning can pay off in very tangible ways. Reducing tax surprises, lowering hidden fees, and creating a clearer path forward. Whether it’s selling appreciated assets without tripping costly tax thresholds, or freeing up thousands of dollars in annual savings by rolling over a high-fee account, the right strategies can make a lasting difference. If you’ve built up assets over time, from stock options to retirement accounts, it may be worth reviewing whether your current plan is truly working as hard for you as it could. Small adjustments today can translate into big savings and peace of mind tomorrow.
