Many advisors struggle with how to price their expertise.

Understanding the value of your planning process is the first step to confidently charging planning fees — and helping clients recognize your worth.

Why Charging Financial Planning Fees Matters for Your Practice

Your clients aren’t just buying investments. They pay for you and your team’s time, expertise, and wisdom you have accumulated over your career. They are paying for the unique process you take them through to help them identify their goals, concerns and opportunities. It’s more than just recommending investments or solutions, it’s about aligning their money with their greater purpose.

But many wealth professionals hesitate to charge planning fees, fearing that it’ll deter prospects from buying a product or moving money over to manage. At C2P, we’ve found that charging planning fees actually takes the pressure off the client. They’re in a more trusting mindset as a result.

Two Compensation Models Financial Advisors Should Consider

We have two primary compensation models as options:

• Monetize your time by charging planning fees
• Charge for implementation by helping clients execute their wealth management strategies

View these compensation models as two different opportunities. You can then begin to consider charging planning fees as selling the process rather than the product. Unbundling the process from the product in this way also benefits the client because it disarms them. Once a client agrees to move forward, we can charge advisory fees or earn commissions to help them implement the plan.

[Related: How To Provide Exceptional Wealth Management for High-Net-Worth Individuals]

What Is the Right Fee Structure for Your Practice?

Fee-Only vs. Commission-Based: Understanding the Difference

Fee-only financial planning poses fewer conflicts of interest because you earn no commissions for product sales.

Commission-based advisors earn income from selling investment products, regardless of how they perform for the client.

A Proven Planning Process

Our offices have found tremendous success in providing a low cost basic plan that sketches out the client’s assets using The Bucket Plan®. They do so by performing a volatility tolerance analysis, investment audit, and Social Security analysis. It’s a quick process that focuses on helping the client structure their assets to meet their objectives without the need of advanced modeling or analysis.

This approach works well for the mass affluent who don’t have a lot of complexity and don’t feel like they need an advanced comprehensive financial plan. It helps create a mutual strategy the client and advisor agrees upon, as well as an asset transition guide to how the money will be invested.

For clients who need a more advanced plan, you’d pivot to a more substantial planning fee. Here, you charge appropriately for specialized services like tax planning, estate planning, equity compensation or stock option planning, as well as advanced modeling.

[Related: 3 Key Strategies To Help Guide Clients Through Market Volatility]

How to Charge Planning Fees

Charging planning fees can establish greater trust between clients and advisors, as counterintuitive as that might seem.

When we pay for something, we tend to value it more. When you charge planning fees for services, you signal to your clients that you’re a trusted professional, not just a salesperson typing to sell them something.

Your Financial Advisor Fee Structure Options

You have several ways to structure planning fees for a comprehensive financial plan:

1. Flat Fee: We see this as the most common approach for basic plans. My firm’s flat fee typically ranges from $995 – $4,995 depending on complexity.
2. Annual/Monthly Retainer: We tend to favor this model when working with an ultra-high net worth client who will take more time to organize and understand their goals, objectives and implementation needs.
3. Per Service Charge: We see this pricing model when we are marketing transactional services as a lead in to introduce new clients to the firm, such as Social Security planning or tax preparation.
4. Hourly Rate: We tend to offer this to existing customers if they need us to do additional work above and beyond our current engagement.

Key Questions to Guide Your Fee Structure Decision

One of the biggest challenges in charging for planning advice is that no one-size-fits-all approach exists. It comes down to what type of practice management you have and what kind of clients you serve.

Here are a few example questions to consider:

• Are you building a lifestyle business, or are you trying to build enterprise value with critical mass?

• Do you only need to feed yourself, or are you trying to feed multiple advisors and need more activity?

• Are you willing to do some work for free to hopefully earn business? Or do you want to guard your wisdom for only paying customers?
• Are you working with simple clients or advanced clients who need time-consuming planning, such as estate or tax planning?
• Do the clients have a lot of analytical clients that want to see every detail, or are they more high level?

How to Sell Your Financial Planning Process to Clients

Remember: We’re in the sales business as financial advisors. Until you make a sale, you can’t do any of your best behind-the-scenes work. Monetizing your wisdom helps you plant seeds and uncover additional concerns and priorities throughout the process.

If your business model revolves around holistic financial planning, in addition to managing assets and executing strategies on your client’s behalf, you may want to consider charging a planning fee to engage with a new potential client before you invest a lot of time, energy and effort into all the planning work you do.

How to Position Your Planning Fees with Prospects

Be upfront with your prospects; position your fees in their mind from the beginning. Remind them what they receive in return for your planning fees:

• Education on financial strategies and market conditions
• Professional advice tailored to their specific situation
• Comprehensive onboarding to understand their complete financial picture
• Strategic planning that adapts to their changing needs
• Ongoing strategy development as markets and regulations evolve
• Most importantly, time to get to know each other and build a lasting relationship

They’re paying for your advice and experience just as they would any other professional, like an attorney or accountant.

[Related: Winning Financial Advisory Marketing Tactics for Growth]

Key Takeaways for Charging Planning Fees

Charging planning fees positions yourself as the professional advisor your clients need. When you confidently charge for your expertise, you create better client relationships and build a more sustainable practice.

The key is finding the right financial advisor fee structure that aligns with your practice goals, client base, and the value you provide. Whether you choose a flat fee, retainer model, or hybrid approach, consistency and transparency in how you communicate your fees will serve both you and your clients well.

Ready To Confidently Charge Financial Planning Fees?

Let’s transform how you approach planning fees and practice management.

Learn how to get paid for your advice with our proven Bucket Plan live trainings:

• The Bucket Plan® 1.0 helps you integrate a proven process with tools and concepts to educate the client, ultimately provided a plan deliverable the client can understand
• The Bucket Plan® 2.0 goes further, showing you how to charge planning fees for the holistic wealth management process you take the client through

No more giving away your financial expertise — schedule a free call to learn about how our proven wealth management process can help you monetize your wisdom today!

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Explore Podcasts for Pricing Strategies and Practice Management Tips

Not ready to schedule? Stay sharp with insights from our most popular financial advisor podcasts:

The Bucket Plan® On-Demand Podcast: Get tips on pricing, planning best practices and real-world implementation.

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The Rainmaker Multiplier On-Demand Podcast: Hear how top advisors build scalable practices using proven fee structures and holistic planning strategies.

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Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. C2P provides information for informational and training purposes only. This presentation’s information was accurate at the time it was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Key Takeaways

The One Big Beautiful Bill (OBBB) Act brings big changes:

• Makes Section 199A/QBI permanent
• Raises the SALT cap to $40,000 through 2029
• Lifts estate exemption to around $15 million/$30 million in 2026
• Creates Trump Accounts
• Introduces new senior deductions

Financial advisors have immediate planning opportunities for Roth conversions, charitable bunching and family wealth strategies.

Let’s explore what the OBBB Act means for you as a financial advisor and for your clients. We’ll also uncover how its tax changes reshape long-term planning.

What the OBBB Act Means for Financial Advisors

If your clients haven’t asked you about the One Big Beautiful Bill Act yet, they will. And when they do, you want to be the advisor who does more than understand the changes. You want to immediately show them how to benefit from it..

The president signed the OBBB Act, also known as Trump’s Big Beautiful Bill, into law on July 4, 2025. It represents the most significant tax legislation since the Tax Cuts and Jobs Act.

Unlike most tax changes that give us months to prepare, these provisions took effect immediately. This sudden shift created both opportunities and traps for advisors who aren’t prepared.

Here’s your chance to differentiate yourself from the competition. While other advisors are still reading summaries, you can be implementing strategies that save clients thousands annually. Meanwhile, you position yourself as the proactive tax-smart advisor they need.

What Tax Cuts Are in the One Big Beautiful Bill?

The One Big Beautiful Bill Act lays the foundation for permanent tax certainty.

Let’s start with the headline everyone’s talking about. The OBBB makes the Tax Cuts and Jobs Act provisions permanent. No more sunset clauses, no more uncertainty about 2026. For advisors, this changes everything about our long-term planning.

Consider what “permanent” really means for your clients. We’re now operating with tax brackets that are dramatically lower than historical norms.

A married couple can earn up to $128,450 in gross income ($96,950 taxable income limit + $31,500 OBBB-enhanced standard deduction) and stay in just the 12% bracket. In 1980, that same inflation-adjusted income would have faced rates of 24-32%.

This represents annual tax savings of $10,000-15,000 for typical middle-income families compared to historical rates.

With permanent low rates, the focus has shifted from rushing income to timing it strategically.

[Related: How to Provide Exceptional Wealth Management for High-Net-Worth Individuals] 

What Does the Big Beautiful Bill Mean for SALT Deductions? The $500k Planning Cliff

The OBBB creates an extreme tax cliff between $500,000 and $600,000 modified adjusted gross income (MAGI). For taxpayers under $500,000 MAGI, the SALT cap increases to $40,000 through 2029. But here’s the critical part: it phases out by 30% of income over $500,000.

This steep phase-out represents a significant opportunity for proactive SALT planning for high-income clients.

Think about it this way: a client increasing their MAGI from $500k to $600k doesn’t just face higher ordinary rates. They lose $30,000 in SALT deductions, creating an effective marginal rate of 45.5%.

For your high-income clients in states like California or New York, this creates massive planning opportunities around income timing and entity structure.

New Charitable Giving Rules: Planning Around the 0.5% Floor

Starting in 2026, itemizers can only deduct charitable contributions exceeding 0.5% of their AGI. For a client with $1 million AGI, the first $5,000 in charitable giving generates zero tax benefit.

These new itemized deduction limits change how clients approach annual giving.

The strategic response? Consider bunching.

Instead of recommending clients give $5,000 annually, suggest they give $25,000 every five years. Then you can use donor-advised funds to smooth out actual charitable distributions while helping maximize their tax deduction.

For clients already giving significantly, this creates opportunities for multi-year funding strategies that overcome the floor limitation.

[Related: Year-End Charitable Giving Strategies: A Guide for Financial Advisors]

Senior Deductions and 0% Capital Gains: The Temporary Advantage

Don’t miss this provision: Taxpayers age 65 and older get an additional $6,000 deduction through 2028. Combined with the enhanced standard deduction, a married couple both over 65 can claim $46,700 in total deductions.

This creates a perfect set of variables for 0% capital gains harvesting.

These clients can realize up to $79,400 in capital gains at 0% federal tax. That’s $11,910 in annual tax savings at current capital gains rates.

[Related: 8 Social Security Myths Examined: Important Insights for Financial Advisors]

Trump Accounts and Enhanced Family Planning Tools

The OBBB introduces “Trump Accounts,” a new savings vehicle created under the act.

Think of these as traditional IRAs for children with no earned income requirement. Parents can contribute $5,000 annually, and children born in 2025-2028 receive $1,000 in federal seed money.

While the tax treatment isn’t as favorable as 529 plans for education, it provides flexibility for many more purposes after age 18, such as a first home or a car. This offers a complementary savings vehicle for clients concerned about overfunding 529s.

Additionally, the OBBB Act creates more layers for comprehensive family planning:

• Enhanced Child Tax Credit ($2,200 per child with $1,700 refundable)
• Increased estate exemptions ($15 million per person)

You can wrap these changes into a coordinated family wealth planning stack. Align Trump Accounts, the enhanced Child Tax Credit and higher estate exemptions with your clients’ goals.

[Related: Advising Clients on 529 Plans and Tax-Efficient College Savings Strategies]

Qualified Business Income Deduction (QBI) Section 199A Made Permanent: What Business Owners Need to Know

Section 199A is now permanent with enhanced thresholds; the phase-out ranges increased by $75,000 (single)/$150,000 (joint). This means more taxpayers can ignore wage and property limitations.

This permanent change solidifies one of the most valuable tax provisions for small business owners.

But here’s what’s critical for specified service trade or business (SSTB) owners facing complete phase-outs. With permanent certainty, entity structure decisions become more strategic.

The accumulated earnings tax risk makes converting to a C corp often inadvisable for many service businesses. That’s despite the superficial appeal of the 21% rate.

Estate Tax Changes and Strategic Timing for High-Net-Worth Families

The $15 million exemption ($30 million for couples) creates interesting trade-offs. With permanent high exemptions, the urgency for large lifetime gifts has diminished, especially considering the loss of basis step-up.

For high-net-worth clients, these shifts redefine how and when to transfer wealth across generations.

The key insight? Lifetime transfers now require careful analysis weighing estate tax savings against lost income tax benefits from basis step-up. For many assets, the math favors waiting for the step-up unless you’re confident about significant future appreciation.

[Related: How Financial Advisors Can Attract and Retain High-Net-Worth Clients in 8 Steps]

The Roth Conversion Sweet Spot with Permanent Low Tax Rates

With permanent low brackets and enhanced deductions for seniors, we’re in a Roth conversion golden age.

The combination of three factors creates compelling reasons to accelerate traditional IRA conversions:

• Historically low tax rates (now permanent)
• Wide bracket spreads (12% bracket extends to nearly $97k for couples)
• The SECURE Act’s compressed distribution timeline.

Consider this scenario: a 60-year-old couple can convert $68,450 annually at just 12%. In turn, they potentially save their heirs from 37% or higher tax rates on inherited IRAs.

[Related: 5 Types of Roth Conversion Strategies to Manage Taxes]

Critical Energy Tax Credit Deadlines You Can’t Miss

Several energy-related credits created or extended under the OBBB are set to expire soon. Valuable tax credits are phasing out on specific dates.

If any apply to you, mark your calendar and take action to help maximize your clients’ tax benefits before these opportunities disappear.

• September 30, 2025: All clean vehicle credits expire:
  • 25E (Previously owned vehicles)
  • 30D (New clean vehicles)
  • 45W (Commercial clean vehicles)
• December 31, 2025: Residential energy credits expire:
  • 25C (Home improvement)
  • 25D (Residential clean energy)
• June 30, 2026: Construction must begin for commercial building credits
  • 179D (Commercial buildings)
  • 45L (New efficient homes – must be acquired)
• July 4, 2026: Solar and wind construction deadline for continued credits:
  • Projects must be operational by December 31, 2027

Lock in timelines now, build a client outreach list, and prequalify vendors and document eligibility so credits don’t slip away at filing time.

[Related: One Big Beautiful Bill: A Tax-Smart Income Strategy for Financial Advisors]

How the OBBB Redefines Tax Management for Advisors

The advisors who will differentiate themselves are those who understand the difference between tax preparation, tax planning, and tax management.

Only tax management offers strategic positioning throughout the year and across decades.

Consider developing these capabilities in light of the changes.

These are the most immediate ways to apply OBBB tax changes to real-world client planning:

• Advanced SALT planning for high-income clients
• Charitable bunching and donor-advised fund strategies
• Multi-year Roth conversion planning
• Business entity optimization with accumulated earnings tax awareness
• Family wealth transfer strategies that balance estate and income taxes

The numbers are compelling to clients and help articulate the importance of this moment.

You can help a client layer income efficiently and save $15,000 or more annually. Or perhaps you implement Roth conversions and preserve millions for the next generation.

These measurable value-adds help justify advisory fees and create client loyalty.

Get Specialized Support in Tax Management

At C2P, we help you build expertise in tax management and holistic planning strategies. These skills differentiate your practice and help you provide extraordinary value during major legislative changes like the OBBB. Schedule a free call to explore how our proven frameworks can help you serve your clients to the fullest.

Reach out, and we’ll explore how our proven frameworks can help you serve your clients to the fullest.

Schedule a Free Call

Continue Your Professional Development and Prep for the OBBB

We’re just getting started: Take advantage of the financial advisor training and informational resources we offer.

Get Your Complete OBBB Implementation Guide

Ready to dive deeper? Our comprehensive 49-page OBBB advisor guide and training session has you covered:

• Breaks down every provision
• Provides granular implementation strategies
• Includes client talking points

Use code PROSPERITY to receive the complete package (valued at $179) for free!

Get Full Guide and Training Session for Free

Watch: Proactive Client Communication Opportunities

The OBBB can be a powerful client acquisition and retention tool for advisors who act decisively. We created this video summary for your clients immediately after the bill passed. It helps them understand the key provisions before they have a chance to worry. Watch the video.

Listen to Financial Advisor Podcasts

Subscribe to our industry-leading podcasts for ongoing insights:

• The Bucket Plan® On Demand, with investment strategies and client communication techniques
• The Rainmaker Multiplier On Demand, with practice management expertise from top-performing advisors

For Financial Professional Use Only. This information is for educational purposes and not intended as individual investment, tax, or legal advice. Tax laws frequently change—consult with qualified professionals for current guidance.

Your wealthy clients aren’t hiring you just to help them manage the wealth they make, they expect you to help them keep more of it, too.

If you’re looking to differentiate your practice and provide exceptional wealth management for high-net-worth individuals, consider elevating your tax management services.

Why? Most advisors focus exclusively on investment management and basic tax planning. Very few deliver true proactive tax management even though it can make all the difference in growing their clients’ wealth and trust.

Start Offering Proactive Tax Management Services

As financial advisors, we’ve long understood the importance of tax planning in helping clients optimize their wealth. But for those of us who are truly committed to delivering maximum value, tax planning alone is not enough. The real opportunity lies in proactive tax management—a dynamic, year-round process that aligns tax-efficient investment strategies with a client’s entire financial picture.

Despite thousands of pages of IRS tax code, revenue rulings, and private letter rulings, the entire complexity of our tax system can be distilled to this fundamental truth: not all money is taxed the same. This simple seven-word phrase has transformed my approach to wealth management for high-net-worth individuals.  An advisor who can digest this information and simplify it for their clients, helping them maximize income while minimizing taxes, has a chance of a lifetime to not only help an awful lot of people, but to build their business in a way they’ve never seen before.

[Related: How Financial Advisors Can Attract and Retain High-Net-Worth Clients in 8 Steps

Take Your Clients Through The Tax Management Journey®

When I began implementing tax management in my practice, I realized I needed a systematic way to explain complex tax concepts to clients and prospects. Through my conversations with clients, I developed The Tax Management Journey® — a strategic 7 “stop” framework to help guide my clients toward better lifetime tax outcomes:

Once I did, I discovered something remarkable: it became my most powerful client acquisition tool. Affluent prospects would sit back after seeing my tax management framework and say, “This is what we’re not getting from our current advisor.”

It was so helpful for me that I started teaching it to other advisors. The Tax Management Journey® training is basically me opening up my playbook and showing you exactly how I use tax management to land high-net-worth clients.

Curious about attending the next session? It might be the most profitable two days you spend this year. Learn more about the Tax Management Journey® Training and upcoming dates

[Related: Staying Sharp to Stay Ahead: Why Continuous Learning is Crucial as a Financial Advisor]

Take Advantage of the Latest Tax Laws

A Massive Opportunity for High-Net-Worth Advisors

The timing couldn’t be better to position yourself as a proactive tax manager. On July 4, 2025, President Trump signed The One Big Beautiful Bill Act (OBBB) into law, creating significant tax legislation that permanently extends key provisions and introduces new tax benefits and planning opportunities.

This creates tremendous opportunity for advisors focusing on wealth management for high-net-worth individuals. The OBBB represents a pivotal moment comparable to the Tax Cuts and Jobs Act of 2017, perhaps even more significant given the permanence of many provisions and the new planning strategies now available.

Consider the new opportunities available for your HNW clients:

• Tax brackets are now permanent, providing long-term planning certainty
• Estate and gift tax exemption increased to $15 million per person and made permanent
• Enhanced SALT deduction opportunities through 2029
• New income-based deductions for seniors, business owners, and specific income types

• Permanent business tax benefits including Section 199A and 100% bonus depreciation

Affluent clients are increasingly eager to understand how these changes impact their financial future. By transforming tax law complexity into opportunity, you can dramatically accelerate your practice growth while delivering tremendous value to your clients.

Enhance Your High-Net-Worth Planning Capabilities with C2P

At C2P, we provide the training, tools and resources advisors need to implement tax management and other core concepts of holistic financial planning into their practice.

Ready to elevate your wealth management for high-net-worth individuals? Book a free 20-minute strategy call today to learn how leading advisors are using C2P’s concepts and support to transform their client acquisition process. Plus, see if you qualify to attend the complete Tax Management Journey® Training for free.

Book a Free Call

Stay Informed with On-Demand Tax Management Podcasts

Continue your professional development by subscribing to our industry-leading podcasts:

• The Bucket Plan® On Demand
• The Rainmaker Multiplier On Demand

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Savvy financial advisors are helping clients optimize their charitable giving strategies, especially as the holiday season approaches.

This year’s planning takes on heightened importance following the passage of the One Big Beautiful Bill Act (OBBB), which permanently extended the Tax Cuts and Jobs Act provisions while introducing a significant change for charitable giving.

Beginning January 1, 2026, itemized charitable deductions will be subject to a new 0.5% AGI floor – meaning clients must exceed 0.5% of their AGI before any charitable deduction applies.

With 2025 being the last year without this limitation, you have a unique opportunity to help your clients maximize their charitable impact while minimizing their tax burden. Consider the following strategies:

Qualified Charitable Distributions: More Valuable Than Ever

Qualified Charitable Distributions (QCDs) represent one of the most powerful tax-efficient giving strategies available to clients over 70½. For 2025, clients can distribute up to $108,000 directly from their IRA to qualified charities, with these distributions counting toward required minimum distributions. What makes QCDs particularly valuable is their ability to bypass Schedule A itemized deductions, providing substantial tax benefits even for clients taking the standard deduction.

Unlike other charitable giving methods, QCDs aren’t subject to Adjusted Gross Income (AGI) limitations, offering unique flexibility in tax planning. Importantly, QCDs will completely avoid the new 0.5% AGI floor starting in 2026, making them even more valuable going forward. This strategy extends beyond personal IRAs – inherited IRA beneficiaries over 70½ can also utilize QCDs, creating additional planning opportunities for clients managing inherited retirement assets.

Key Implementation Tips:

• Ensure checks clear by December 31st for current-year tax benefits
• Document all QCD distributions meticulously for tax reporting
• Consider setting up dedicated QCD checkbook access for frequent givers

[Related: The One Big Beautiful Bill Act (OBBB): Key Tax Changes Advisors Should Know]

Donor-Advised Funds: Why Timing is Everything

Donor-advised funds offer sophisticated planning opportunities, particularly valuable during this transition period. These vehicles provide immediate tax deductions while allowing clients to maintain control over the timing of charitable distributions. This flexibility becomes especially powerful when working with highly appreciated investments, as clients can avoid capital gains taxes while securing deductions at fair market value.

With the OBBB making the Tax Cuts and Jobs Act provisions permanent and the new charitable floor approaching in 2026, consider accelerating DAF funding in 2025.

The permanent higher standard deductions creates opportunities to optimize charitable giving across tax years. Consider “stacking” multiple years of planned giving into a single year to maximize deduction benefits when they’ll provide the most value. Additionally, donor-advised funds offer powerful legacy planning opportunities through successor naming, ensuring family charitable traditions continue for generations.

[Related: 4 Types of Roth Conversion Strategies to Manage Taxes]

Asset Selection: Maximize Tax Benefits with Appreciated Securities

When it comes to charitable giving, selecting the right assets can dramatically impact both the tax benefit and overall gifting strategy. High-net-worth clients often hold significantly appreciated stock positions that create substantial capital gains exposure. By strategically selecting these appreciated stocks for charitable contributions, advisors can help clients avoid capital gains taxes while securing a deduction at full market value.

This strategy becomes particularly powerful when stocks are trading at all-time highs. For clients concerned about maintaining market exposure, consider implementing a strategic repurchase of the gifted positions. This creates a valuable cost basis step-up while maintaining the desired portfolio allocation.

Note: Starting in 2026, the OBBB caps the charitable deduction benefit for top-bracket taxpayers at 35 cents per dollar rather than 37 cents.

Don’t Forget About Documentation

Even the most carefully crafted charitable giving strategy can fail without proper documentation. The IRS maintains strict requirements that demand attention to detail. For all gifts exceeding $250, clients must obtain contemporaneous written acknowledgment before filing tax returns, or the deduction could be disallowed regardless of the gift’s legitimacy.

Essential Documentation Requirements:

·       Written acknowledgment explicitly stating “no goods or services were received”

·       Contemporaneous receipt obtained before tax filing

·       Clear records of all QCD transactions

·       Verification of qualified charity status

[Related: Tax Planning Strategies To Help You Serve Women Clients]

Elevate Your Practice with Tax Management

As tax laws grow increasingly complex and high-net-worth clients demand more sophisticated planning, financial advisors face mounting pressure to deliver comprehensive tax strategies.

Through C2P’s Tax Management Journey® training, advisors learn our proven seven-step process for delivering proactive tax management to clients. This comprehensive, 2-day training program equips you with tools and strategies to assist clients with charitable giving, tax bracket management, asset allocation optimization, and strategic timing of distributions.

With that being said, understanding charitable giving strategies is just one piece of comprehensive tax management. Beyond charitable strategies, you’ll also learn how to:

• Implement proactive tax management throughout the year
• Convert tax knowledge into higher planning fees and enhanced client value
• Partner with CPAs and tax professionals to expand your service offerings
• Attract and retain high-net-worth clients through comprehensive tax management
• Navigate the new OBBB provisions including the charitable floor, permanent TCJA rates, and enhanced business deductions

Get Specialized Support in Tax Management

Schedule a 20-minute consultation with our team to learn more about how implementing The Tax Management Journey® can help you build a more successful practice.

During your consultation, you’ll also discover how C2P’s comprehensive suite of training programs and resources can further elevate your expertise and differentiate your practice.

Elevate My Expertise

Enhance your Tax Management Expertise with our On-Demand Planning Podcasts

This blog post is based on insights from myself and Jeff Warnkin, CPA, CFP® of JL Smith Holistic Wealth Management.

Stay current with the latest financial planning strategies by subscribing to our podcasts at C2P:

• • The Bucket Plan® On Demand
  • The Rainmaker Multiplier On Demand

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

What are the 4 Types of Roth Conversion Strategies?

Did you know that the correct Roth conversion strategy can have a significant impact on how much your clients will pay in taxes over the course of their lifetime? Taking advantage of the tax benefits provided by Roth conversion strategies can save your clients on taxes, putting more money back into their retirement.

Roth accounts offer tax-free income in retirement without required minimum distributions. When determining the taxation of Social Security benefits or if higher Medicare premiums apply, it isn’t included in the income calculations.

The 4 types of Roth conversion strategies are:

1. Bracket-Bumping Conversion
2. Market-Timing Roth Conversion
3. Back-Door Roth Conversion
4. Mega Back-Door Roth Conversion

(note: these are strategic approaches—separate from types like standard, in-plan, or IRA-to-Roth conversions).

Want to help your clients go from forever taxed to nearly never taxed?

Contributions to a Roth account are post-tax funds and continue to grow tax-free, so you can keep the government out of your clients’ retirement savings.

When working with clients, be mindful of the tax implications as a whole. It’s common to consider Roth conversion strategies at the end of the year when you have a full understanding of their annual income.

Learn how The Bucket Plan® can help financial advisors increase their profitable business lines.

Let’s dive into each strategy and how to implement them effectively.

1. Bracket-Bumping Conversion

A bracket-bumping Roth conversion strategy attempts to keep converted cash within the client’s current tax bracket, so a conversion doesn’t force any of their funds into a higher bracket.

You can lessen the tax blow and make it more manageable for your clients by spreading conversions across several years to decrease overall taxes.

2. Market-Timing Roth Conversion

The best time to take advantage of a Roth conversion strategy is when the market is down, causing the client’s traditional IRA to lose value.

When account values are temporarily depressed, you can convert more shares for the same tax cost, maximizing the benefit when markets recover.

Sudden market declines may provide a brief conversion window. Time the market so your clients get the most out of their Roth conversion strategies.

3. Back-Door Roth Conversion

Back-door conversions should be reserved for your high-income earners. This allows clients to utilize a Roth IRA to save for retirement, even if their annual income exceeds the maximum allotted amount.

This strategy works around income limits by contributing to a non-deductible traditional IRA and immediately converting to Roth. There are a number of factors to consider when looking at a back-door Roth conversion, so thorough planning is essential.

4. Mega Back-Door Roth Conversion

Mega-back door conversions should also be reserved for your highest-income earners.

This is where the client contributes after-tax dollars to a traditional 401(k) through their employer. Then, immediately roll it over to a Roth IRA from their 401(k). But don’t forget to consider plan availability and coordination with other retirement savings strategies.

[Related: How to Provide Exceptional Wealth Management for High-Net-Worth Individuals]

A Note About SEP and SIMPLE IRAs

SEP IRAs, SIMPLE IRAs, and traditional IRAs all follow identical conversion rules. Any of these account types can utilize the strategies above. The conversion process and tax treatment are the same regardless of the original account type.

From a conversion standpoint, these accounts are treated as traditional IRAs and can be converted using any of the four strategies that best fit your client’s situation.

2025 Tax Environment Update

Recent tax legislation has made historically low tax rates permanent, creating an unprecedented planning window for Roth conversions.

2025 Tax Brackets (Married Filing Jointly):

Special Considerations:

• New senior deduction ($6,000 per person over 65) may phase out with higher income
• Enhanced standard deductions provide more tax-free income room
• SECURE Act inheritance rules make conversions more urgent for estate planning

How to Use Roth Conversion Strategies to Manage Taxes

The Tax Management Journey® helps differentiate between tax planning, tax preparation, and tax management.

When you build a house, you first need a blueprint or a plan with everything laid out. This is similar to tax planning, whereas tax management is more like the contractors and builders who get the job done.

And the person who prepares annual tax returns is comparable to an inspector who comes in on a regular basis to make sure nothing is broken, and everything runs smoothly.

Start Putting Tax Management Strategies into Action

Are you optimizing your clients’ portfolios to ensure their taxes are adequately managed and selecting Roth conversion strategies that benefit them?

Book a FREE 20-minute consultation with one of our Business Development Representatives to learn how C2P can help you get started—no tax background necessary!

[Related: How Financial Advisors Can Attract and Retain High-Net-Worth Clients in 8 Steps]

Learn From On-Demand Tax Management Podcasts

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The Bucket Plan® On-Demand Podcast

Get insights on comprehensive planning best practices, tax strategies and real-world implementation for serving diverse client needs.

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The Rainmaker Multiplier On-Demand Podcast

Hear how top advisors build scalable practices using proven tax management strategies and holistic planning approaches.

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Financial Professional Use Only

• The information provided in this presentation is not intended as investment advice or legal advice.
• The information provided is for informational and training purposes only.
• The information in this presentation was accurate as of the time of the material was created.

Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Recent market events have been jarring. The S&P 500 dropped nearly 5% in a single day, and major indexes posted their worst performance since 2020.

Tariff announcements, inflation concerns and broader economic uncertainties have all contributed to this current market volatility. As financial advisors, we need effective strategies to guide clients through these turbulent times while maintaining their confidence in long-term planning. 

So, how do you deal with market volatility? 

I recently spoke with Dr. Apollo Lupescu of Dimensional Fund Advisors on “The Bucket Plan® On Demand” podcast. We uncovered three critical strategies that can help transform market turbulence into client confidence.

Let’s delve into what we discussed.

1. Proactively Communicate With and Educate Clients

The best advisors don’t wait for clients to call – they reach out first during market downturns. My business partner Jason L. Smith, founder and CEO of C2P and JL Smith Holistic Wealth Management, puts it perfectly in another The Bucket Plan On-Demand episode:

“This is what differentiates the true elite wealth managers — they’re proactive versus reactive.” 

Effective communication during volatility includes definite strategies: 

• Personal outreach. In our practice, we’ve seen tremendous success when advisors personally call their significant client relationships during volatile periods. These aren’t panic calls — they’re reassurance check-ins. 

• Educational content. Provide clients with clear explanations about market dynamics, including how tariffs work and their potential impact. When Apollo and I discussed tariffs, he explained they typically create a one-time price adjustment rather than sustained inflation. Research shows that when washing machines received a 20% tariff in 2018, about 12% of that cost passed to consumers. Producers and retailers absorbed the remainder. 

• Focus on facts, not politics. When creating client communications, remember that market perspectives often align with political viewpoints. Stay focused on fact-based analysis rather than commentary that might alienate portions of your client base. 

[Related: Acquiring Clients Through Authentic Marketing: 4-Step Growth Guide for Financial Advisors]

2. Share Historical Context To Build Market Perspective

Historical perspective is one of our most powerful tools for calming client fears. It’s important to emphasize that since 1926, only 12 calendar years have seen market losses exceeding 10%. Major 20% to 40% downturns typically result from unpredictable “Black Swan” events rather than telegraphed policy changes. 

Share these key historical insights: 

• Market efficiency and tariffs. Markets efficiently incorporate information and expectations about policy changes, including tariffs and market volatility impacts. As Apollo explained during our podcast, tariff announcements typically create short-term volatility. However, their actual economic impact is often already priced in before implementation. This explains why reactive trading based solely on headlines frequently underperforms. 

• Recovery patterns. Even significant events like the 2020 pandemic, which caused a 30% market drop, resulted in the market ending that year up 18%. This demonstrates the importance of time horizon. 

• Rolling returns. Shift client focus from day-to-day volatility to rolling 12-month returns. Over the past decade, these have averaged approximately 13%, even accounting for periods of volatility. 

Apollo emphasized that looking at longer time frames provides crucial perspective. While the market might be down a few percentage points year-to-date, it’s typically up significantly on a rolling 12-month basis. 

[Related: How Financial Advisors Can Simplify Asset Allocation for Clients] 

 3. Use The Bucket Plan Framework for Client Confidence

Using a structured, time-segmented approach like The Bucket Plan can make complex market conversations feel more manageable and reassuring.

How To Talk to Clients About Market Volatility Without Sparking Fear

Arguably, The Bucket Plan® framework is the most powerful tool in our communications arsenal during market volatility. This time-segmented approach provides a clear structure that helps clients understand why they have protection despite market fluctuations. That’s especially true if they’re worried about protecting their retirement income.

The three-bucket approach provides a trusted framework: 

• Direct security (Now Bucket). When clients express concern about covering expenses during downturns, remind them of their Now Bucket (0-2 years). It should contain enough cash to fund immediate needs, shielding them from having to sell investments during volatility. 

• Buffer zone (Soon Bucket). The Soon Bucket (3-9 years) creates a crucial time buffer of conservatively invested assets. Those allows growth investments years to recover before anyone taps them for income. 

• Long-term perspective (Later Bucket). The Later Bucket (10+ years) is designed for growth — and it expects volatility, although uncomfortable. The time horizon allows these investments to weather volatility and potentially benefit from recovery. 

Why Implement The Bucket Plan Strategy?

Smith shared his “aha moment” about The Bucket Plan strategy during the 2000-2001 market correction. Clients with properly funded Now and Soon buckets remained calm during significant volatility, while those without this structure experienced tremendous stress. 

This three-bucket retirement plan approach is so effective because it directly addresses sequence of returns risk. That risk remains one of the greatest threats to retirement security during market downturns.

By protecting retirement income in the Now and Soon buckets, clients can maintain their lifestyle while giving growth assets time to recover. This significantly reduces the psychological pressure to make emotional decisions during market volatility. 

The Bucket Plan also helps identify opportunities during volatility, including Roth conversions at lower valuations, disciplined rebalancing and tax-loss harvesting. It positions you as a proactive advisor rather than just a portfolio manager. 

[Related: Financial Planning Simplified: Designing Your Client’s Bucket Plan] 

Download our free guide on The Bucket Plan Best Interest Process. 

How C2P Supports You During Market Volatility

At C2P, we’re committed to helping you thrive in all market conditions. Whether you’re navigating current volatility or building a more resilient practice for the future, we offer comprehensive resources to support your growth: 

• The Bucket Plan Training. Master our proven time-segmented planning approach through our Bucket Plan 1.0 training program. It equips you with both the technical knowledge and client communication strategies to implement this powerful framework. 

• Timely Communication and Content. Access turnkey client emails, presentation templates and social media content. We design these specifically to educate and reassure your clients in turbulent markets. 

• Practice Management Resources. From client acquisition to team building, our systems help you develop a sustainable and scalable advisory business. 

• Holistic Planning Tools: Expand your service offerings beyond investment management with our five-pillar approach to holistic wealth management. 

Ready to build a more resilient practice? Our Bucket Plan 1.0 training program provides you with the framework, tools and communication strategies necessary to transform client conversations during volatile markets.

Schedule a consultation to learn how our comprehensive advisor solutions can transform your practice during uncertainty. 

Book a Free Call 

Podcasts: Stay Informed With Industry-Leading Insights 

Subscribe to our professional development podcasts, and stay at the forefront of industry developments. Continuous learning is essential for advisor success.

The Bucket Plan On-Demand Podcast 

Hear from industry specialists like Dr. Apollo Lupescu on investment strategies, client communication techniques and practical applications of The Bucket Plan methodology. Recent episodes cover market volatility strategies, tax-efficient planning and client confidence in uncertain times. 

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The Rainmaker Multiplier On-Demand Podcast

Learn practice management strategies from top-performing advisors who have built successful enterprises. Topics include business scalability, team development, marketing strategies and enterprise value creation. 

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For Financial Professional Use Only 

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor. 

Are you trying to attract and then retain high-net-worth (HNW) or ultra-high-net worth (UHNW) clients? Many financial advisors are… so what can you do to stand out from your competition and win these clients?

You can position yourself as the go-to advisor for affluent individuals with three actions:

• Offer comprehensive wealth management and financial planning services.
• Target the right audience.
• Provide exceptional client experiences.

How? Let’s explore some key strategies to help you succeed with high-net-worth clients.

[Related: Advanced Tax-Efficient Planning for High-Net-Worth Clients]

1. Offer Holistic Wealth Management Services

HNW and UHNW individuals are looking for advisors who can address all aspects of their often complicated, financial lives.

It’s the same reason many of these individuals may establish a family office — a team including a financial advisor, tax specialist, estate planner, accountant, and more — to comprehensively manage the family’s finances with personalized services to grow and protect their wealth.

Consider incorporating financial planning aspects like these and more into your client’s plan, like a family office would:

• Tax management
• Asset management
• Estate planning
• Insurance or protection planning
• Social Security planning

As many as 48% of millionaire investors would consider changing advisors to move to one offering more comprehensive financial advice

By expanding your service offerings beyond basic investment management to a holistic approach, you can provide more value to these clients and deepen your new or existing relationships.

Let’s look at three ways to do so.

2. Minimize Your Clients’ Taxes with Tax Management Services

Just about everyone wants to legally save on taxes, especially high-earners and high-net-worth individuals whose taxes are often a major factor preventing them from reaching their financial goals.

By actively managing your clients’ taxes and incorporating tax strategies into your planning process, you can help them minimize their tax burden while optimizing their overall financial picture.

Integrating tax management strategies like the following into your services can significantly enhance client retention and satisfaction:

• Tax-loss harvesting
• Roth conversion planning
• Charitable giving strategies (e.g., donor-advised funds, charitable trusts)
• Tactical asset location across taxable and tax-advantaged accounts

Plus, tax management is an incredibly appealing service not every advisor provides which can help you differentiate your offerings. Market researchers CEG Insights (formerly Spectrem Group), found that 92% of those surveyed expected tax planning advice from their financial planning professional, but only 25% of clients received that service.

3. Position Life Insurance as an Asset Class & Advanced Planning Solution

Life insurance may seem unnecessary to individuals with at least $1 million liquid or investable assets as they have enough wealth to pay out or support their beneficiaries when they pass. But what financial professionals who serve high-net-worth individuals know is that it can play a crucial role in tax-efficient planning. The key is to help clarify this for clients so they see the value.

Life insurance offers tax-deferred growth, income tax-free death benefits, and potentially tax-free distributions when structured properly.

Consider working advanced life insurance strategies into your high-net-worth and ultra-high-net-worth clients’ wealth plans, such as:

• Irrevocable life insurance trusts (ILITs) for estate tax planning
• Premium financing for large policies
• Combining life insurance with long-term care benefits
• Using life insurance in business succession planning

[Related: Positioning Life Insurance in a Holistic Financial Plan]

4. Secure Multi-Generational Relationships & Legacies with Estate Planning Services

For UHNW clients, consider offering comprehensive estate planning services that mirror those of a family office. This may include the following:

• Developing multi-generational wealth transfer strategies
• Using advanced trust structures like grantor retained annuity trusts (GRATs), qualified personal residence trusts (QPRTs) or intentionally defective grantor trusts (IDGTs)

Keeping a network of attorneys and CPAs in your circle will help you implement complex estate plans.

By being strong in legacy and estate planning, you have a unique opportunity to connect with your next generation of potential clients by working with their children or family. These referral-based relationships can be some of your strongest as an advisor, so it’s important to nurture them. You can do this by leveraging organizational tools like the Family Estate Organizer (FEO) to streamline processes and provide comprehensive support. You can also host educational family meetings or offer to create financial plans for beneficiaries.

[Related: Simplify the Way You Talk to Clients]

5. Identify Your Niche Audience to Target & Cater To

While serving high-net-worth clients in general is valuable, specializing in a specific niche can help you further stand out to them and attract your version of your ideal clients.

Simplifying Equity Compensation & Stock Options for High-Net-Worth Clients

C-suite executives and employees with significant equity compensation are often already qualified to work with you from an asset perspective, so consider developing the necessary expertise to serve their advanced planning needs. This demographic benefits most from financial advisors who can skillfully do these things:

• Exercise stock options.
• Prepare for an initial public offering (IPO).
• Understand restricted stock unit (RSU) planning.
• Handle 10b5-1 trading plans.
• Manage concentrated stock position.

6. Provide 11-Star Client Service

Exceptional service is crucial for attracting and retaining HNW clients because this clientele expects an elevated standard. Go above and beyond to create memorable experiences and to differentiate yourself with prospects, current clients, and boost referrals.

Some ways to elevate your client service include:

• Personalized parking spaces: Reserve a parking spot with the client’s name when they visit your office.
• Welcoming reception: Have a team member greet clients, offer refreshments, and start a conversation before the meeting.
• Thoughtful gestures: Send personalized letters along with fruit baskets instead of flowers for condolences, plants for sick clients, and Valentine’s Day candy to widowers.
• Celebrate milestones: Acknowledge birthdays, anniversaries, and new grandchildren with small gifts or gestures.
• Host special events: For significant milestones like anniversaries or notable birthdays, consider organizing and or funding a celebration for the client and their family.

[Related: Innovative Client Appreciation and Prospecting Events for Financial Advisors]

7. Prioritize Your Marketing Efforts

You need a strong marketing strategy that showcases your expertise and value proposition to attract HNW clients.

Having a niche will also come in handy here as the more you tailor your messaging to your target audience, the more likely it will resonate with them.

Ensure your marketing appeals to your ideal clients and their unique challenges:

• Marketing materials (Who we serve page on your website, email campaigns promoting the latest tax updates, etc.)
• Content you create (like blogs, videos and podcasts)
• Organic and paid social media efforts

Consider the following marketing tactics:

• Develop a professional website highlighting your services and expertise
• Create high-quality content (blogs, videos, podcasts) targeting your ideal clients and the challenges they face
• Leverage social media to share insights and engage with prospects
• Target interests or relevant traits of your ideal audience in paid social media marketing
• Host educational seminars or webinars on topics relevant to high-net-worth individuals

8. Become a Thought Leader

Developing trust with any client takes time — how do you convey your credibility immediately to HNW clients seeking expert guidance?

Consider taking steps to establish yourself as a thought leader in your niche. You can attract your ideal clients’ attention in distinct ways:

• Produce valuable, timely, highly personalized content.
• Appear as a respected authority in the industry.

Here are four methods to build your reputation:

• Speaking at industry conferences and local events
• Contributing articles to respected publications
• Pursuing advanced designations and certifications
• Developing proprietary planning processes or frameworks

Grow Your HNW Client Base With C2P 

Attracting and retaining high-net-worth clients requires a multifaceted approach. It combines comprehensive services, targeted marketing, and exceptional client experiences. By implementing these strategies and continuously refining your approach, you can build a thriving practice serving affluent individuals and families.

Learn more strategies like these and how to master them – book a call with C2P to explore how we can help you take your practice to the next level and succeed with high-net-worth clients.

Subscribe to our podcasts to stay updated on the latest news and insights from industry leaders. Our podcasts include The Bucket Plan®, The Rainmaker Multiplier, or A Woman’s Clarity®.

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

In the intricate world of retirement planning, Social Security remains both a cornerstone and a source of confusion.

As a financial advisor, you’ve likely encountered clients grappling with misconceptions that could derail their retirement dreams, or at the very least give them pause on when to collect Social Security. But what if you could cut through the noise and dispel the myths to make a more effective retirement income plan for your clients?

Examining Social Security: Addressing Eight Common Myths

Let’s explore eight prevalent Social Security myths and uncover the realities that may help enhance your advisory services.

Myth 1: Social Security Doesn’t Pay Much

Reality: Social Security benefits can be substantial for some recipients. For married couples aged 65 or older in the second quintile of the income distribution (with incomes between $27,538 and $44,424), Social Security comprises more than half of total income for 83.2% of them

A typical middle-income couple retiring at 66 and living to 86 might receive over $1.4 million in benefits. For high-income clients, this could potentially exceed $2.3 million, with some possibly receiving over $120,000 annually.

How To Attract and Retain High-Net-Worth Clients

Myth 2: Social Security Is Running Out of Money

Reality: While the Social Security Trust Fund may face challenges by 2034, benefits are not expected to cease entirely. Payroll taxes could still fund a significant portion of scheduled benefits, and potential adjustments might help ensure long-term sustainability.

Myth 3: Filing Decisions Are Irreversible

Reality: There’s some flexibility in changing Social Security filing strategies:

• Within 12 months of filing, individuals may be able to withdraw their application and restart benefits later.
• Between the full retirement age of either 66 or 67 (depending on date of birth) and 70, beneficiaries might have the option to suspend benefits to potentially increase future payouts.

Myth 4: Spousal Benefits No Longer Exist

Reality: While some strategies were eliminated, certain spousal benefits still exist. A lower-earning spouse may be able to claim up to 50% of their higher-earning spouse’s full retirement age benefit, provided the higher-earning spouse is collecting.

Myth 5: The 10-Year Marriage Requirement Applies to Survivor Benefits

Reality: The 10-year rule typically applies to ex-spousal benefits, not survivor benefits. For survivor benefits, the marriage generally needs to have lasted 9 months, with some exceptions, not 10 years.

Myth 6: An Ex-Spouse’s Remarriage Affects Your Benefits

Reality: An ex-spouse’s remarriage doesn’t typically affect your ability to claim benefits on their record, as long as you remain unmarried.

Myth 7: There is an Unlimited Backdating of Social Security Benefits

Reality: Backdating options are limited:

• Backdating prior to full retirement age is generally not allowed
• Between full retirement age and 70, backdating may be possible up to 6 months or to full retirement age, whichever is less

Myth 8: Maximum Payout is Always Best

Reality: The strategy that maximizes total payout may not always be optimal. Factors like the time value of money and life expectancy could be considered. Strategies providing more money upfront might be beneficial for some clients.

Enhancing Your Practice with Social Security Knowledge

Understanding these Social Security nuances may help increase your value as a financial advisor. By providing accurate guidance, you can assist clients in making informed decisions about their retirement income strategies.

Are you interested in deepening your knowledge and potentially growing your practice? Learn how we may be able to help you navigate Social Security planning and provide more valuable services to your clients.

Schedule a Call

This blog post is based on insights from The Bucket Plan® On Demand podcast series, featuring a live presentation on Social Security with specialist Ash Ahluwalia, CFP®, MBA.

Subscribe to our podcasts for regular updates on retirement planning, financial planning techniques, and industry insights to keep your practice at the forefront of wealth management.  Our podcasts include The Bucket Plan®, The Rainmaker Multiplier, or A Woman’s Clarity®

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

As we gear up for the 2024 presidential election, it’s important to consider about how some of the candidates’ proposals will inevitably affect your financial advisory clients, and therefore how you advise them in their best interest.

Looking at Vice President Kamala Harris’s tax proposal, for example, we see significant changes that would occur, particularly for high-net-worth individuals and families.

These potential tax policy updates may take a bite out of your clients’ assets, so it’s best to start immediately protecting their financial futures through proactive planning and education. Here’s what you and your clients need to know:

Income Tax Increases: What High-Earners Should Expect

Kamala Harris proposes allowing the Tax Cuts and Jobs Act (TCJA) to expire in 2025, which means tax hikes for almost all income levels.

Notably, for those earning over $400,000, Harris supports bringing back the top 39.6% income tax rate. If your clients fall within this income range, now is the time to discuss tax-efficient investment strategies. Additionally, child tax credits will be expanded, including a one-time $6,000 credit for the first year of a child’s life.¹

These changes could impact your financial planning strategies, especially for clients seeking to maximize tax deductions for their families.

Capital Gains Tax Hike: Key Considerations

If implemented, Harris’ plan would increase the capital gains tax rate to 28% for households making more than $1 million annually. When combined with her proposed 5% net investment income tax (NIIT), the total rate for high earners would be 33%.^2,3

It’s worth noting that if implemented, this would be the highest capital gains tax rate since 1978.³

To help clients this would apply to reduce their capital gains exposure and manage their investment portfolios, consider working with them to implement tax-loss harvesting and long-term holding strategies.

Estate Tax: Significant Changes on the Horizon

One of the most significant changes that may occur involves lowering the estate tax exemption from the current $13.61 million to $3.5 million per individual, or $7 million for married couples. This change, coupled with higher estate tax rates (up to 65%), means your clients with sizable estates need urgent attention.⁴

Business Tax Strategy: Corporate Rate Increases

Be ready to adjust strategies for your clients with significant business interests.

Harris wants to raise the current 21% corporate tax rate to 28%. She also proposes increasing the 15% alternative minimum tax on very large corporations to 21%. ⁵

Real Estate Tax Strategy: Limiting 1031 Exchanges

Kamala Harris’s proposal places a $500,000 cap on like-kind exchanges (also known as 1031 exchanges), a common tax deferral strategy used in real estate.⁷

Be prepared to adjust long-term real estate investment strategies for clients who rely on these deferrals.

Wealth Tax and Financial Transaction Tax

The proposal also introduces a 25% minimum income tax on individuals with at least $100 million in wealth. Additionally, Harris proposes quadrupling the existing 1% excise tax on stock buybacks by publicly held corporations to 4%.⁵

Financial transaction tax on stock and bond trades could erode some investment performance, especially for active traders.

To minimize the impact of taxes if Harris is elected and this legislation is enacted, consider reviewing your clients’ portfolios for long-term investment strategies that can help insulate against the ups and downs of political cycles.

Preparing Your Clients for Potential Tax Changes

As we’ve explored, Kamala Harris’s tax proposals could significantly impact high-net-worth individuals and families. While these changes are not yet law and would require congressional approval, it’s crucial to start preparing your clients for potential shifts in the tax landscape.

How to Start the Conversation

See how Dave Alison, CFP®, EA, BPC, founder and CEO of Alison Wealth Management, positions these potential tax changes to his high-net-worth clients with an informational video he created:

Consider sharing content like this with your clients or creating your own version to powerfully demonstrate your thought leadership.

By staying informed and proactive, you can help your clients navigate these potential changes and protect their financial futures.

Standing Out by Staying Informed

Want to learn more about navigating potential tax changes and enhancing your client services? Book a call with our team at C2P to explore how we can help you stay ahead of the curve and provide exceptional value to your high-net-worth clients.

Subscribe to our podcasts for regular updates on tax proposals, financial planning strategies, and industry insights to keep your practice at the forefront of wealth management.

Our podcasts include The Bucket Plan®, The Rainmaker Multiplier, or A Woman’s Clarity®.

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Sources:

1. https://www.kiplinger.com/taxes/kamala-harriss-tax-plans-2024
2. https://www.cnbc.com/2024/09/06/harris-biden-capital-gains-tax-election.html
3. https://www.cnbc.com/2024/09/10/harris-capital-gains-tax-election.html
4. https://www.forbes.com/sites/matthewerskine/2024/08/22/kamala-harris-endorses-american-housing-and-economic-mobility-act-tax-proposals/
5. https://www.kiplinger.com/taxes/kamala-harriss-tax-plans-2024