The Most Expensive Habit in Financial Planning
Most advisors think about taxes for about six weeks a year.
Then they forget about them for the other 46.
And that habit may be costing their clients — and their business — more than almost anything else.
The Overlooked Opportunity
For many clients, taxes are one of their largest annual expenses.
Yet most advisors treat tax season like a filing deadline instead of a planning opportunity.
There’s a major difference between:
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Tax preparation
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Tax planning
Most CPAs focus on preparation. They take the information given, file the return, and ensure compliance.
But proactive tax planning is about shaping outcomes before they happen.
That’s where advisors can create massive value.
Why Tax Planning Creates Differentiation
When advisors help clients reduce unnecessary taxes, three things happen:
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Clients keep more money
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Clients see tangible value
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Clients naturally refer others
Few clients brag about asset allocation.
But they absolutely tell friends when they save $100,000 in taxes.
That’s why tax planning becomes one of the most powerful growth drivers in a financial advisory practice.
Why Advisors Avoid Tax Planning
Most advisors don’t avoid tax planning because it isn’t valuable.
They avoid it because:
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It feels complex
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They don’t want to stop being the expert
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They don’t know where to start
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They don’t schedule learning time
But the truth is, tax frameworks are learnable.
And advisors don’t need to become CPAs — they just need to become strategic curators.
Simple Examples of Tax Planning Opportunities
Some opportunities are surprisingly simple:
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Paying children through a family business
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Renting your home to your business (Augusta Rule)
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Cost segregation studies
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Accelerated depreciation
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Charitable planning strategies
These are often missed — not because they’re unavailable — but because no one is proactively looking.
A Better Planning Rhythm
Top advisory firms build tax planning into their yearly process:
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Review tax returns at onboarding
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Conduct mid-year planning sessions
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Run fourth-quarter projections
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Review draft returns before filing
