Podcast Summary: Digging Deeper with your Clients, Part 3 of 3 | AICPA Personal Financial Planning (PFP) Section

Date: January 28, 2025
Host: AICPA & CIMA
Guest (Main Speaker): Debbie Taylor

Episode Overview

This episode, hosted by Debbie Taylor, serves as a deep dive into practical, step-by-step tax planning strategies for financial advisors. Building on previous sessions and her April 22 webinar, Debbie outlines essential processes and 20 key tax planning strategies, equipping listeners with an actionable toolkit to enhance value for clients and distinguish their practice through proactive, comprehensive tax intelligence planning.

Key Discussion Points & Insights

The Importance of a Structured Service Calendar

• Evergreen Service for Evergreen Fees: An extensive, seasonally-structured service calendar ensures predictability, accountability, and clarity for both clients and the advisory team. It’s a tool for both prospecting and ongoing client communication, highlighting what services clients receive and when.

Five "Must Dos" of Effective Tax Planning

[03:35–17:15]

1. Collect the Tax Return

   • “Too many advisors pretend to do tax planning, but they don’t even collect the tax returns… That’s not tax planning.” – Debbie Taylor (05:30)
   • Robust and persistent client outreach is required—sometimes more than 30 requests per year—for complete data gathering.

2. Run Returns Through Diagnostic Software

   • Use advanced software (e.g., HolistaPlan) rather than manual or spreadsheet-based reviews. Provides comprehensive analysis in seconds and points out actionable observations.
   • “Why walk somewhere when you can drive a car? Why drive a car when you can fly?” – Debbie Taylor (08:00)

3. Generate and Review the Tax Report

   • Assess the software-generated analysis for trends, inconsistencies, and key points.
   • Optionally, supplement with the AICPA checklist for thoroughness.

4. Proactive Client Communication

   • Don’t just send reports—accompany them with a detailed cover letter interpreting results and outlining actionable insights, ensuring the client understands and can act on advice.
   • “We have a rule in our office that the analysis needs to go out within seven to ten days of collecting the tax return… If a client takes the time to send you something, then you need to take the time to get back to them.” – Debbie Taylor (12:50)
   • Avoid the mistake of holding results for the next meeting; maintain an ongoing dialogue.

5. Identify Long-Term Strategic Opportunities

   • Combine tactical (short-term) insights, like tax refunds or immediate changes, with strategic, multi-year suggestions—e.g., lifetime tax savings, impact on heirs, effects of recent legislation (like the Secure Act), and intergenerational planning.

20 Key Tax Planning Strategies

[17:25–21:10]

Debbie provides a rapid-fire overview of 20 essential strategies, each one a potential lever for client value. Not all apply to every client, but together they form a comprehensive toolkit.

1. Roth Conversions & Contributions
2. Intergenerational Tax Arbitrage & Trusts
3. Life Event & Deathbed Planning (stepped-up basis, asset transfers)
4. Widow’s Penalty Planning
   • “Every couple that comes to you has a widow penalty problem. Every couple, because eventually one of them is going to be the last person standing.” – Debbie Taylor (18:26)
5. Maximizing Retirement & Employer Benefits
6. Legacy & Beneficiary Designations, Education, Charitable Gifting
7. Managing Tax Trade-Offs (Income vs. Estate Taxes, Generational Tax Strategy)
8. Accumulation & Distribution Strategy
9. Asset Location Optimization
10. Tax-Efficient Investments Review
11. Tax Loss Trading & Capital Gain Harvesting
12. Advanced Charitable Giving (QCDs, donor-advised funds, charitable trusts)
13. After-Tax Income Maximization in Retirement
14. Timing Income Realization (and its impact on Social Security and other benefits)
15. Tax Bracket Management (especially for lower brackets)
16. Managing Social Security, Medicare IRMAA, and Net Investment Income Tax Bumps
17. Estate Planning / Reviewing Estate vs. Income Tax
18. Miscellaneous: Moving States, Filing Status, Retirement Timing
19. Family Wealth Protection (trusts, creditor protection)
20. Family Risk Management (insurance strategies, catastrophic risk, life insurance as wealth transfer)

• Quote: “It takes more than implementing one of these concepts to increase your client’s tax alpha—your approach must be comprehensive and address all aspects of tax intelligence planning to achieve maximum results.” – Debbie Taylor (21:00)

Notable Quotes & Memorable Moments

• On the necessity of thorough data collection:
  “That’s not tax planning. That’s doing some very basic intake and checking a box.” (05:50)

• On efficiency and technology in tax planning:
  "This software, within 30 seconds, has analyzed the entire tax return for you and pointed out observations that will be very helpful..." (08:18)

• On the urgency of responsive client service:
  “If a client takes the time to send you something, then you need to take the time to get back to them.” (12:53)

• On the value proposition for quality tax planning:
  "Savvy tax planning can more than pay for your fee several times over and save hundreds of thousands of dollars or millions of dollars in a client's life. So my question to you is, why settle for average when you know better?" (21:30)

• On the advisor’s role:
  "Taxes are an integral part of every financial planning and investment decision that you make, so you need to view every decision through a tax lens." (20:49)

Timestamps for Key Segments

• 00:38–03:35 – Introduction & Service Calendar Overview
• 03:35–17:15 – The “Five Must Dos” of Tax Planning (detailed step-by-step process using client returns and technology)
• 17:25–21:10 – The 20 Key Tax Planning Strategies (the action toolkit for advisors)
• 21:10–21:49 – The Case for Comprehensive Tax Planning & Closing Remarks

Final Takeaway

Debbie Taylor’s closing message urges advisors to “go forth and be bold” in delivering proactive, comprehensive services that go beyond average—“Bring these services to your clients… and just be the best advisor that you can be.” (21:34)

For those seeking to elevate their advisory practice and client outcomes, integrating these five crucial workflow steps and leveraging the 20 strategy toolkit can yield meaningful tax alpha, enduring client relationships, and a standout value proposition.