Why tax planning is the unsung hero of retirement strategy

SEATTLE — When most people think about retirement planning, they picture saving diligently, investing wisely, and dreaming of the day they can finally clock out for good. But a crucial piece of the puzzle that often gets overlooked is taxes.

“There’s an old saying in the financial services world, that it’s not how much you have, but how much you keep,” Mark Stimpson said.

That’s why tax planning is a cornerstone of the firm’s retirement strategy. While many CPAs focus on filing taxes based on past income, Elevated Financial Management prefers to plan to help clients keep more of their hard-earned money.

Tax-saving strategies must be personalized.

“It really depends on your individual circumstance,” Casey Elkins said. “Roth conversions, for example, are often discussed, especially for those nearing retirement, but they’re not always the right fit for everyone.”

Other strategies, like tax-loss harvesting—selling investments at a loss to offset gains—can also be powerful tools. But again, Elkins and Stimpson stress that these tactics must be tailored to each person’s financial picture.

One of the biggest myths about tax planning is that it’s only useful if you start early. While beginning 10 years before retirement is ideal, both advisors agree that it’s never too late to make a difference.

“Even if you retired ten years ago, there are still strategies that can be used,” Elkins said.

And for younger professionals?

“If you’re 30 or 35 and saving well, it’s worth asking if you’re saving in the right type of account,” Elkins said.

Different accounts are taxed in different ways, and early planning can yield major benefits down the road.

Another common mistake is waiting until the end of the year to start thinking about taxes.

“Some people wait until November or December and want to get all their planning done,” Stimpson said. “But by then, there’s not enough time.”

Starting early in the year—or better yet, early in your career—gives you more options and better outcomes.

Unlike many large financial firms that shy away from tax discussions, Elevated Financial Management integrates tax planning into every client’s retirement strategy.

“If your advisor tells you to ‘go talk to your CPA,’ that’s a red flag,” Stimpson said. “You need someone who understands how taxes impact your entire financial picture.”

Visit Elevated Financial Management for more financial tips.

Sponsored by Elevated Financial Management

Segment Producer Suzie Wiley. Watch New Day Northwest at 11 a.m. weekdays on KING 5 and streaming live on KING5.com. Contact New Day.