WEALTH MANAGEMENT|FINANCIAL PLANNING

Proactive Tax Planning for High Earners

Reduce lifetime taxes paid through coordinated, multi-decade planning.

Book Your Free Strategy Call

Effective tax planning at Heirloom looks beyond the current year. The focus is multi-decade, lifetime tax strategy — evaluating RMDs, Roth conversion windows, and income timing to reduce total lifetime taxes paid.

The Problem

The best tax strategies require action before the taxable event — not after.

Tax strategies are most powerful before income or gains occur. Once a high-income year has already happened, many planning tools are no longer available.

Common high-cost tax situations:

  • Large IRA balances with no Roth conversion strategy before RMDs begin
  • Concentrated positions with embedded gains and no diversification plan
  • Business sale or inheritance income with no advance planning

Timing is everything:

  • Roth conversion windows often close as income rises or RMDs begin
  • Tax-loss harvesting opportunities exist only while losses are unrealized
  • Asset location decisions — which accounts hold which investments — compound over decades

Heirloom's Approach to Tax Planning

Tax strategies are executed in alignment with investment and retirement decisions — not in isolation — because a move that saves taxes in one area can create a problem in another.

Our Approach

1. Multi-Year Tax Projection

We model:

  • Future income, RMDs, Social Security, and capital gains across retirement years
  • High-risk tax years — when income spikes from multiple sources simultaneously
  • Windows where proactive planning can make the biggest difference
  • The interaction between different account types and income sources over time

Our Approach

2. Strategy Development

We identify the right levers for your situation:

  • Roth conversions — converting tax-deferred assets in lower-income years
  • Asset location — placing tax-inefficient investments in tax-advantaged accounts
  • Charitable strategies — QCDs, DAFs, and appreciated securities donations
  • Tax-loss harvesting — capturing losses to offset gains
  • Income timing adjustments — accelerating or deferring income strategically

Our Approach

3. Coordinated Implementation

Tax strategies are executed alongside:

  • Investment decisions — ensuring tax considerations don't disrupt the portfolio
  • Retirement income planning — coordinating withdrawals with tax bracket management
  • Estate planning — structuring assets to minimize transfer taxes
  • Cash flow planning — ensuring tax payments do not create liquidity problems

Our Approach

4. Annual Review

We update projections annually to account for:

  • Tax law changes that create new planning opportunities or close existing ones
  • Income changes from business events, job changes, or investment activity
  • Life events — retirement, inheritance, major purchases, or charitable gifts
  • RMD adjustments as account balances and tax law evolve

The long-term strategy stays current.

What Coordinated Tax Planning Delivers

Clients who engage in proactive, coordinated tax planning with Heirloom typically experience meaningfully lower lifetime taxes paid — and greater flexibility in retirement.

Lower Lifetime Taxes Paid

  • Roth conversions completed in optimal windows before RMDs or higher income
  • Tax bracket management reduces effective rate across retirement years
  • Strategic asset location improves after-tax investment returns

Reduced RMD Exposure

  • Roth conversion strategy reduces the size of tax-deferred accounts over time
  • Charitable strategies offset RMD income where appropriate
  • RMD timing and amount planned well in advance — no surprises

Better Coordination Across Advisors

  • Tax strategies developed alongside the CPA — not handed off in isolation
  • Investment decisions account for tax implications at the time of execution
  • Estate planning connected to the tax strategy from the beginning

Greater Flexibility and Options

  • More after-tax wealth means more choices in retirement spending and giving
  • Tax diversification — taxable, tax-deferred, and tax-free accounts — provides flexibility
  • Planning ahead preserves options that disappear once income events occur

Is Tax Planning Right For You?

This service is especially valuable for:

Pre-retirees in peak earning years

With Roth conversion opportunities and windows that will close as income rises or RMDs begin.

Clients approaching age 73

With large IRA balances and significant upcoming RMD exposure that hasn't been planned for.

Clients with significant tax events

Whose tax situation has changed due to a business sale, inheritance, major income shift, or concentrated position.

The best time to act is before the taxable event — not after.

Heirloom weaves tax planning into every investment and retirement decision — because where assets are held, when income is recognized, and which accounts are drawn from can significantly reduce long-term tax exposure.

Schedule A Strategy Session with Our Team

This initial conversation is designed to understand your goals, current situation, and priorities. No sales pitch — just a focused conversation about where you are and where you want to go.

Book Your Strategy Call Now

FAQs