276: Why Tax Planning Beats Tax Prep: How to Take a Tax-Forward Approach to Your Money

Many people wait until tax season to think about their taxes, only to feel overwhelmed and unprepared. But the truth is, tax season isn’t really a “season” at all! 

Tax planning is an ongoing process that plays a crucial role in your financial success, and should be a consideration all year long. Because when approached strategically, proactive tax planning and preparation can help you keep more of your hard-earned money.

In this episode, Jen Rupp (our Director of Financial Planning/Senior Financial Advisor) and Alyssa Hause (one of our Lead Financial Advisors) take the mic to talk about the value of proactive tax planning–and how you can take some of the stress out of tax prep.

They break down the difference between tax planning and tax preparation, explain why looking ahead instead of reacting can make a huge impact on your financial future, and walk you through examples of how working with financial professionals who understand tax strategies can help you minimize what you owe–and maximize your long-term wealth.

Even though we’re still in the first quarter of the year, now is the perfect time to start thinking about your 2025 taxes–and how small changes in your income, investments, and overall financial decisions can lead to significant tax savings down the road.

So whether you’re preparing for this year’s tax deadline or looking to set yourself up for long-term success, we hope this conversation helps you take control of your tax strategy and ensure your money is working for you in the most tax-efficient way possible. 💪

Here’s what you’ll learn in this week’s episode of Love, your Money®:

• 02:54 Why taxes aren’t the once-per-year headache you might be treating them as 
• 03:51 The key difference between tax planning and tax preparation, plus examples of what tax-forward planning looks like 
• 06:31 How to reduce the stress of tax season by preparing early, and a checklist of documents you need to file 
• 07:57 How Jen and Alyssa approach their own tax planning and preparation, and why they’re particular about accurately assessing withholdings 
• 11:08 Working with a tax-savvy advisor, the best way to avoid filing amendments, and why we take a proactive approach to communication 
• 13:51  Advanced tax strategies you should know–beyond tax loss harvesting and 401(k) contributions–to increase your savings and wealth accumulation 

 

Show Notes
To get access to the full show notes, including all the resources mentioned, visit: https://hendershottwealth.com/podcast/why-tax-planning-beats-tax-prep

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Hendershott Wealth Management, LLC and Love, your Money do not make specific investment recommendations on Love, your Money or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of Hilary Hendershott, CFP®, MBA.