Tax Planning

Proactive, year-round tax strategy

Most tax savings don’t happen in April — they happen in the months before year-end, when there’s still time to act. We approach tax planning as a year-round discipline: harvesting losses when markets create the opportunity, managing when capital gains are realized, and keeping an eye on your income bracket so avoidable taxes don’t sneak up on you.

Because we manage your investments and your financial plan together, tax strategy is woven into every decision — which account to fund, which asset to sell, which account to withdraw from — rather than treated as an afterthought.

Tax planning strategies we put to work

Depending on your situation, the toolkit can include:

• Tax-loss harvesting to offset realized gains and reduce taxable income
• Roth conversion analysis, especially in lower-income years and early retirement
• Asset location — placing tax-inefficient holdings in tax-advantaged accounts
• Charitable giving strategies, including donor-advised funds and qualified charitable distributions (QCDs)
• Income bracket and capital-gains bracket management
• Required minimum distribution (RMD) planning
• Timing of equity compensation — RSU vesting, option exercises, and ESPP sales

Coordinating with your CPA

We don’t prepare tax returns — we make your CPA’s job easier. We communicate with your accountant throughout the year, share realized gain/loss detail, and flag planning opportunities before deadlines pass, so the professionals in your corner are working from the same playbook. Litchfield Financial does not provide tax preparation or legal advice; always consult your tax professional about your specific situation.