There are many situations during a person's lifetime that can generate unusually large federal and state income tax liabilities. These include: selling one's home, exercising employee stock options, receiving bonuses, and selling appreciated securities, among others. Because we have a good view of our clients' entire financial picture, we are able to plan for these events in ways that reduce the tax burden and increase the after-tax return for our clients.
The key word here is planning.
Without a solid financial plan, individuals will likely pay more taxes than would otherwise be necessary. By looking into our clients' future, anticipating the events that generate larger tax liabilities, and properly planning for these events, we increase the overall wealth that our clients retain.
After all, the amount you earn is not quite as important as the amount you keep after the taxes are paid!
