Tax season often comes and goes with a sigh of relief. Returns are filed, payments are made, and many clients don't think about taxes again until the following year.

But the most effective tax planning doesn't happen in March or April.

It happens all year long.

That was the central message of a recent Financial Experts Network webinar featuring Brady Bassford, financial advisor with Prudential Advisors and LPL Financial. Rather than focusing on complex tax strategies reserved for ultra-high-net-worth clients, Brady shared practical planning opportunities that advisors encounter every day—many of which can save clients thousands of dollars while strengthening advisor relationships.

His philosophy is simple:

Tax planning shouldn't be an annual event. It should be woven into every financial planning conversation.

Start With the Tax Return

If there's one document Brady believes every advisor should review early in the planning process, it's the client's tax return.

A Form 1040 tells a remarkably detailed story.

It reveals income sources, investment holdings, retirement distributions, interest income, charitable giving, business ownership, and often uncovers planning opportunities that clients themselves don't recognize.

Instead of viewing tax returns as something only the CPA handles, Brady encouraged advisors to use them as a roadmap for identifying opportunities to improve after-tax outcomes.

Sometimes one overlooked line item leads to a valuable planning conversation.

Too Much Cash Can Become a Tax Problem

Many clients believe they're making a conservative financial decision by keeping large amounts of money in savings accounts, CDs, or money market funds.

While those assets provide safety and liquidity, they can also generate significant taxable interest income.

Brady shared the example of a client who maintained millions of dollars in high-yield cash accounts after a divorce settlement. Although the interest rates were attractive, the resulting tax bill came as an unpleasant surprise each year.

The lesson wasn't that cash is bad.

It was that advisors should help clients determine how much cash they truly need for emergencies and short-term goals while considering whether excess cash could be invested in more tax-efficient ways that better align with their long-term financial objectives.

Retirement Planning Doesn't End at Retirement

One of the webinar's most interesting case studies involved a client in his seventies who continued working while taking Required Minimum Distributions (RMDs) from his IRA.

Brady identified a planning opportunity that had been overlooked.

Because the client was still employed and participating in his employer's retirement plan, it may have been possible—subject to plan rules and IRS requirements—to roll IRA assets into the employer's 401(k), delaying future RMDs under the "still working" exception.

It's a great reminder that retirement planning isn't something advisors complete once and then ignore.

Changes in employment, legislation, tax rules, and account balances can create new opportunities years after retirement begins.

Regular reviews remain essential.

Don't Overlook Self-Employed Clients

Business owners often have tremendous opportunities to reduce taxes while increasing retirement savings, yet many fail to take advantage of available retirement plans.

Brady described working with a self-employed client who had never established a Solo 401(k) or SEP IRA—even though doing so could significantly reduce taxable income while accelerating retirement savings.

Many entrepreneurs assume they're already maximizing their options simply because they're contributing somewhere.

In reality, selecting the right retirement plan can dramatically change contribution limits, tax deductions, and long-term wealth accumulation.

For advisors, business owners represent one of the richest areas for proactive tax planning.

Investments Should Be Tax-Efficient Too

Taxes don't just come from income.

They also come from investment decisions.

Brady discussed the common problem of clients holding long-time mutual funds in taxable brokerage accounts. Even if investors never sell shares themselves, mutual funds can distribute taxable capital gains generated by the fund manager's trading activity.

Many clients don't realize why they're receiving unexpected tax forms each year.

Helping clients understand how different investment vehicles are taxed opens the door to conversations about exchange-traded funds (ETFs), direct indexing, tax-loss harvesting, and other strategies designed to improve after-tax returns.

The goal isn't simply earning higher returns.

It's helping clients keep more of what they earn.

Charitable Giving Can Become a Tax Strategy

Many clients faithfully donate to charity every year.

Fewer realize those gifts can also become valuable tax planning opportunities.

Brady reviewed strategies such as Qualified Charitable Distributions (QCDs) for IRA owners and Donor-Advised Funds (DAFs) for clients with highly appreciated assets.

These approaches can allow clients to support causes they care about while reducing taxable income, satisfying Required Minimum Distributions, or avoiding unnecessary capital gains taxes.

When charitable planning is coordinated with retirement and estate planning, both clients and charities can benefit.

A Better Client Experience Starts With Better Questions

Perhaps the most valuable lesson from the webinar wasn't a tax strategy at all.

It was Brady's planning process.

Rather than beginning with investments, he starts by learning about the client.

He explores:

• Their goals.
• Their family.
• Their estate plan.
• Their tax return.
• Their concerns.
• Their priorities.

Only after understanding the person does he begin building financial recommendations.

That approach not only uncovers better planning opportunities—it also builds trust.

Clients are far more likely to implement recommendations when they believe their advisor truly understands what matters most to them.

Tax Planning Is One of the Best Ways to Demonstrate Value

Investment performance will always matter.

But today's clients increasingly expect advisors to deliver comprehensive financial guidance.

Tax planning has become one of the clearest ways to demonstrate that value.

Helping clients identify overlooked deductions, improve investment tax efficiency, optimize retirement account strategies, coordinate charitable giving, and reduce future tax liabilities often produces measurable results that clients can immediately appreciate.

In many cases, the conversation about taxes becomes the conversation that strengthens the entire advisory relationship.

Final Thoughts

One of Brady Bashford's strongest messages was that tax planning shouldn't be viewed as a once-a-year discussion or something handled exclusively by a CPA.

Instead, it should become an ongoing part of comprehensive financial planning.

When advisors review tax returns carefully, ask better questions, collaborate with tax professionals, and proactively look for planning opportunities throughout the year, they position themselves as trusted advisors—not simply investment managers.

Sometimes the greatest value an advisor delivers isn't helping clients earn more.

It's helping them keep more of what they've already earned.

Five Questions Financial Advisors Ask About Tax Planning

Q1: Why should advisors review a client's tax return if they aren't preparing taxes?

A tax return provides valuable insight into a client's income sources, investments, retirement accounts, charitable giving, and potential planning opportunities. Reviewing it helps advisors identify strategies that can improve after-tax outcomes while coordinating more effectively with the client's CPA.

Q2: What are some of the most commonly overlooked tax planning opportunities?

Common opportunities include excessive taxable cash holdings, missed retirement plan contributions for self-employed clients, inefficient taxable mutual fund holdings, Required Minimum Distribution planning, Roth conversion analysis, Qualified Charitable Distributions, and tax-efficient charitable giving.

Q3: How can tax planning strengthen advisor-client relationships?

Clients appreciate advisors who help reduce taxes, simplify financial decisions, and coordinate planning across investments, retirement, insurance, estate planning, and charitable giving. Proactive tax planning demonstrates value that extends well beyond portfolio management.

Q4: When should tax planning conversations take place?

The best tax planning occurs throughout the year—not just during tax season. Regular reviews allow advisors to identify opportunities before year-end deadlines and adapt strategies as clients' financial circumstances change.

Q5: Does tax planning replace the role of a CPA?

No. Effective advisors collaborate with CPAs rather than replace them. Advisors identify planning opportunities, discuss potential strategies with clients, and coordinate with tax professionals to ensure recommendations are implemented appropriately and in compliance with current tax laws.