Tax Planning for High Earners: Why Starting Before Fall Matters  

Many high earners don’t start thinking seriously about tax planning until the end of the year. It’s easy to put off, especially when fall gets busy and other priorities take over. 

But waiting too long can limit your flexibility. By the time December arrives, it may be harder to coordinate with financial professionals, adjust your strategy, or act on tax-saving opportunities that take time to implement. 

Starting earlier in the year gives you more room to weigh your options and make informed decisions. You can take action at a comfortable pace without last-minute pressure. 

The Cost of Waiting Until Year-End 

When year-end tax planning gets delayed, your options tend to shrink. There’s less time to implement strategies and fewer chances to coordinate with your financial professional. 

Decisions may feel rushed. You’re juggling deadlines, holiday plans, and a year’s worth of financial decisions in just a few weeks. That’s when it becomes easier to overlook key details or miss strategies that require foresight. 

Take capital gains, for example. If you sell an investment in December and realize a large gain, you may not have time to harvest losses elsewhere in your portfolio. That can lead to a higher tax bill than expected. 

Planning ahead doesn’t guarantee better results, but it gives you the breathing room to act with purpose. 

5 Key Tax Strategies to Review Before Fall 

Getting a head start on midyear tax planning creates more space to adjust and focus on what matters most. Here are five high-impact strategies worth reviewing now while there’s still time to act. 

1. Roth Conversions 

The timing of a Roth conversion can significantly impact how much tax you’ll owe. Income projections and market performance both play a role. Early planning gives you flexibility to determine the right amount—and the right time—for a conversion. 

2. Tax-Loss Harvesting 

This strategy involves selling underperforming investments to offset gains elsewhere. It’s especially useful in volatile markets but takes coordination. If you wait too long, you may miss the opportunity to apply losses strategically. 

3. Charitable Giving Strategies 

Giving to charity can support causes you care about while offering potential tax deductions. Options like donor-advised funds (DAFs) or gifting appreciated assets often take time to set up. Reviewing your giving strategy now helps align your efforts with broader financial and estate planning goals. 

4. Retirement Contribution Check-Ins 

Take a moment to review your contributions to retirement accounts like IRAs or 401(k)s. If you’re behind, there may still be time to increase your deferrals or make catch-up contributions before year-end. 

5. Withholding and Estimated Payments 

If your income has changed this year, adjusting your tax withholdings or making an estimated payment could help prevent underpayment penalties or an unexpected bill at tax time. Midyear is the ideal moment to review and recalibrate. 

Coordinating Tax, Investment, and Estate Planning 

Tax planning doesn’t stand alone—it’s connected to your investment portfolio, retirement plan, and estate documents. When these areas are reviewed in isolation, important connections or opportunities can be overlooked. 

For instance, gifting strategies often overlap all three areas. A gift may reduce your taxable estate, affect your current income, and play a role in your legacy goals. 

Even small details (like how accounts are titled) can influence tax efficiency and asset distribution. Taking time to review everything holistically helps reveal patterns, inconsistencies, or opportunities for improvement. 

Why Q3 is a Powerful Time for Financial Planning 

There’s something about Q3 that makes it a valuable time to revisit your financial plan. Schedules often ease up, and there’s still time to make changes before the busy holiday season and year-end deadlines. 

Advisors tend to be more accessible in late summer or early fall, making it easier to have deeper planning conversations without time pressure. 

Getting ahead in Q3 doesn’t require major changes. Often, it’s about revisiting your plan, checking your progress, and taking small, thoughtful steps forward. 

Final Thoughts: Maximize Your Year-End Planning Window 

Looking at your financial and tax strategy before fall can give you more time to adjust your approach and optimize outcomes. For high earners, this breathing room can make a meaningful difference when aligning tax, retirement, investment, and estate strategies. 

If you haven’t had a midyear check-in yet, this is a great time to do so. A short conversation with your advisor now can help you prioritize and avoid the year-end scramble. 

To help you get started, we’ve put together a simple checklist that highlights key areas to revisit before year-end. 

Download the Smart Year-End Moves Checklist for a clear breakdown of planning topics worth reviewing now. 

Reach out to connect with a financial professional from our team. 

Standard Disclosure  

This blog expresses the author’s views as of the date indicated, are subject to change without notice, and may not be updated.  The information contained within is believed to be from reliable sources.  However, its accurateness, completeness, and the opinions based thereon by the author are not guaranteed – no responsibility is assumed for omissions or errors.  This blog aims to expose you to ideas and financial vehicles that may help you work towards your financial goals. No promises or guarantees are made that you will accomplish such goals.   

Past performance is no guarantee of future results, and any expected returns or hypothetical projections may not reflect actual future performance or outcomes. All investments involve risk and may lose money. Nothing in this document should be construed as investment, tax, financial, accounting, or legal advice. Each prospective investor must evaluate and investigate any investments considered or any investment strategies or recommendations described herein (including the risks and merits thereof), seek professional advice for their particular circumstances, and inform themselves about the tax or other consequences of any investments or services considered.    

Investment advisory services are offered through Liberty Wealth Management, LLC (“LWM”), DBA Liberty Group, an SEC-registered investment adviser.  For additional information on LWM or its investment professionals, please visit www.adviserinfo.sec.gov  or contact us directly at 411 30^th Street, 2^nd Floor, Oakland, CA  94609, T: 510-658-1880, F: 510-658-1886,  www.libertygroupllc.com. Registration with the U.S. Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.  

References  

 Adams, Hayden. (December 11, 2024). How to Cut Your Tax Bill with Tax-Loss Harvesting. Charles Schwab. https://www.schwab.com/learn/story/how-to-cut-your-tax-bill-with-tax-loss-harvesting