How Can A Financial Advisor Help Me Lower Tax Liability?

Kolleen Schocke |

It’s never too early to start planning for retirement, especially when it comes to tax planning in the “distribution phase” of your life. As your portfolio grows into retirement, it’s important to consider your pre-tax and post-tax retirement incomes and how future tax liabilities may impact your overall retirement strategy.  If you’re working with our team, we can show you how these factors can impact your future.

The U.S. tax code is thousands of pages of legislation, court rulings, and legal interpretations. If you’re a high net-worth individual you’re more likely to pay higher taxes. A financial advisor can help you coordinate the details of your financial life and help you communicate your goals to your tax professional. Our approach to working with other industry professionals to create a comprehensive plan for your future can help minimize your overall tax bill.


One of the most common ways to reduce taxes is dividends. Since corporate dividends are paid from after-tax business income, governments typically tax them at a much lower rate than salary or hourly wages. If you are self-employed, you will likely have a few options to move money from your business to your personal accounts.

This can be complex and depends on where you live and work. You can discuss how dividends can apply to your situation with your financial advisor and your team can help structure your affairs to earn dividends instead of a salary.

Charitable Giving

Charitably inclined, high earners can also use charitable donations to reduce taxes. Giving to nonprofits is an honorable thing to do and it can reduce your tax burden. Tax-conscious investors will often donate their securities directly to an organization; a strategy that may offer many benefits. If you have a charity or NGO close to your heart consider contacting their “planned giving” or legacy advancement offices for giving options.

Estate Planning

Estate planning is likely the most important aspect of tax planning at the professional level. Depending on where you live the “death taxes” you may owe after passing could be quite high. There are several strategies to minimize taxes at the estate level. Family trusts, foundations and other corporate structures are often used to lower estate taxes, sometimes significantly.

There are countless ways to reduce your tax payments. Your life is bound to change over the course of your working life and a financial professional can help tailor your plan as needed.


Whether you have millions or are on your way, there is a real benefit to professional advice for tax planning. Our team can help you find strategies to potentially help grow your savings and retain more of its value at tax time. Taxes can make an enormous difference in your post-retirement income so it pays to get advice that may help you achieve more in retirement.


The above discussion is based on current tax law and is for informational purposes only. Nothing herein should be considered individualized investment advice. C-J Advisory, Inc. is a registered investment adviser located in San Jose, CA. Registration of an investment adviser does not imply any level of skill or training and is not an endorsement of any regulatory agency.  C-J Advisory does not provide tax or legal advice.

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2022 Advisor Websites.