Many individuals and families pay more in taxes than they need to—not because of errors, but because of missed opportunities. Whether it’s an unexpected tax bill in retirement or uncertainty about how investments will be taxed, these situations can cause stress and frustration.
Tax planning helps reduce that uncertainty. It’s not just about filing a return—it’s a proactive way to structure your finances so you can keep more of what you earn, make informed choices and minimize unexpected setbacks in the future.
Tax planning is the process of organizing your financial life in a way that legally minimizes your tax liability. Unlike tax preparation, which focuses on reporting what already happened, tax planning looks ahead. It’s about making intentional choices throughout the year to reduce your future tax burden.
This may include:
Effective tax planning is especially important during high-earning years, when transitioning into retirement, or when managing withdrawals across multiple income sources.
Waiting until tax season to think about taxes often limits your options. By then, many decisions—like how much to contribute to certain accounts or when to sell an investment—have already been made. Planning in advance creates opportunities for real savings.
Here are a few practical examples:
Slowly moving money from a traditional IRA to a Roth IRA can reduce future taxable retirement income, particularly when done in lower-income years.
Selling investments that lost value can balance out profits in your portfolio, lowering your taxes.
Choosing which accounts to draw from, and when, can help manage tax brackets and avoid large one-time tax hits—especially important for retirees.
Giving appreciated stock or using qualified charitable distributions (QCDs) from IRAs can help causes you value while cutting your taxable income.
Beyond the financial benefit, planning also brings peace of mind. You’ll feel more confident knowing your financial decisions are aligned with your tax picture—not working against it.
At Heritage Wealth, tax planning is built into how we help clients manage their retirement, investments, and long-term goals. We don’t view taxes as a once-a-year concern—we see them as a key part of every major financial decision.
That might include:
Clients often come away from these conversations with a clearer understanding of how taxes affect their financial life—and how to move forward with confidence. Whether you’re still working or already retired, knowing how taxes fit into your plan can lead to smarter decisions, less stress, and more savings over time.
Based in Naperville, we also facilitate people from the following surrounding areas:
Effective tax planning isn’t something to save for December. Some of the best opportunities—like Roth conversions or adjusting your investment strategy—require time and foresight.
The earlier you start, the more tools are available. That said, it’s never too late to plan. Whether you’re in your peak earning years, approaching retirement, or already drawing from your accounts, tax planning can still make a meaningful difference.
Roth conversions let you shift money from a traditional IRA to a Roth IRA, paying taxes upfront for tax-free withdrawals in the future. This strategy can be especially effective in low-income years, helping smooth out your tax burden over time and reduce required distributions in retirement.
For professionals in their peak earning years, strategic tax planning can help preserve more income and improve long-term wealth. Options may include maxing out retirement contributions, using backdoor Roth IRAs, and planning stock option exercises carefully. These strategies can reduce current taxes while supporting future goals.
Capital gains taxes can significantly impact investment returns if not managed carefully. Planning when and how to sell investments, using losses to offset gains, and holding assets long-term can help reduce your tax liability. Tax-efficient investing also considers account types—placing higher-growth assets in tax-advantaged accounts, for example.
Don’t let taxes overwhelm you. Heritage Wealth provides expert strategies to secure your financial future.
Call (630) 868-9127 or visit htgwealth.com to schedule a consultation.
Heritage Wealth LLC is a registered investment adviser in the State of Illinois and other states where it is appropriately registered. The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption
