Tax planning has long been considered an essential part of wealth management, but today’s tax-aware investment landscape extends far beyond traditional year-end strategies. As new portfolio tools and technologies continue to evolve, advisors have an opportunity to create meaningful after-tax value for clients by making tax management an ongoing discipline rather than an annual exercise.
In this article, Joe Halpern highlights the most common gaps he sees in advisory practices today and outlines practical ways advisors can strengthen their tax planning process, improve client outcomes, and better differentiate their firms.
- Master the Fundamentals First – Consistently executing core tax strategies such as maximizing retirement accounts, optimizing cash management, funding HSAs and 529 plans, and maintaining disciplined operational processes can generate meaningful long-term value for clients.
- Stay Current on New Tax-Aware Strategies – Advisors should understand emerging tools such as direct indexing, long/short tax extensions, exchange funds, and other tax-efficient portfolio solutions that are becoming increasingly accessible beyond institutional investors.
- Focus on After-Tax Returns – Investment decisions should be evaluated based on what clients actually keep after taxes and fees, rather than headline gross returns alone. This perspective often leads to different portfolio decisions and more informed client conversations.
- Use Technology to Scale Tax Management – Modern portfolio management platforms and artificial intelligence are making personalized tax optimization more scalable, allowing advisors to integrate tax considerations into everyday portfolio management.
- Make Tax Planning a Core Advisory Competency – Rather than treating taxes as an annual checklist, successful advisors embed tax awareness into every stage of the investment process, creating stronger client outcomes and a meaningful competitive advantage.
As tax-efficient investment strategies continue to evolve, advisors who proactively expand their knowledge and integrate these capabilities into their practice will be better positioned to deliver long-term value and deepen client relationships.
For a deeper dive into this topic, read the full article on Advisor Perspectives
