Forge a Plan for Tax Efficiency

A Tale of Two Retirees: The Power of Strategic Tax Planning

John and Susan retired with similar assets, but had entirely different outcomes.

John withdrew funds without a tax strategy, increasing his tax burden and Medicare costs. He assumed giving to charity would help his tax burden, but it never seemed to make much of a difference. In the end, John ended up paying about twice what he needed to pay in taxes.

Susan worked with a financial planner to structure her withdrawals wisely—balancing taxable, tax-deferred, and Roth accounts to reduce lifetime taxes. By using strategies like Roth conversions, Qualified Charitable Distributions (QCDs) and capital gains harvesting, she preserved more of her wealth and secured a firm financial future both for herself and her children.

Susan’s advantage in retirement came down to consistent planning and coordination between her financial advisor and accountant.