Is tax planning something I need help with, and will it affect the other areas of my finances?

Tax planning might seem like a separate entity, but in many ways, it goes hand in hand with financial planning as a whole. While it has its own distinct elements, the impact of your taxes is evident throughout the rest of your financial pursuits. This includes your investments, as well as your plans for the future.

When it comes to personal finance, each area is somehow related to the others. As such, putting together an effective tax plan requires knowledge of the other aspects of your finances. The right professionals can help you save money while also helping you make good decisions across the board.

Q: What Would a Tax Planner Do for Me?

A: Income taxes have an impact on a variety of financial matters, so it makes sense for tax planners to be well versed in many different areas.

Your tax planner is a person who would need to have extensive knowledge regarding your income taxes. This familiarity will allow them to help reduce the income taxes you need to pay in the near future as well as in the long term. Minimizing the overall income tax you have to deal with is one of the primary functions of a tax planner.

Q: Would My Tax Planner Focus Only on Tax Issues?

A: Saving on taxes isn’t always a simple process, and it can involve giving up certain assets for varying amounts of time. To guide you in the most effective manner possible, your tax expert will keep the big picture in mind. It is entirely possible to come up with tax saving methods without knowing about the other aspects of your finances. However, the outcome might not be what you desire.

If tax measures don’t take other elements of your financial situation into account, you could end up with only temporary solutions — or even setbacks. Putting together a viable financial strategy without accounting for taxes is always a bad idea. Doing the opposite isn’t much better either.

Q: Should I Let My Taxes Dictate My Investment Strategies?

A: Your tax planner can help you make decisions on your investments by helping you understand the impact your income taxes will have on them. Your investment choices might not hinge entirely on the amount of tax you pay, but in some cases, they will be significantly affected.

One example of this would be the desire to use a home as leverage to fund new investments. Your tax expert will likely advise against this since taking on debt requires repayment, regardless of how the investment goes. This is a tall order when you consider that the investments themselves are far from a guaranteed success. Beyond that, the amount repaid would be after tax. This means your tax bracket will have a weighty impact on whether you can afford to take this risk. For situations like this, a tax professional is a valuable asset to have in your corner.

Understanding the balance between your income taxes and the rest of your finances can be a delicate process. Let the experts at Cornerstone Financial Management, LLC help you with your tax planning needs while also keeping the other aspects of your personal finances in order.

*This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.


Financial freedom begins with a recognition. It is then followed by a decision to leave where you are in pursuit of where you want to be.

Bob Deaton, CFP, CMFC

It isn’t how much money I’m making that will determine my financial success. Rather it is how much I’m keeping and how hard it is working for me.

Jay Brown

If we are planning for our future, we have to begin with the present. If we don’t identify our starting point, we will not have a direction to walk towards.

Ken Calcutt, CMFC

In the pursuit of our financial goals, we must be willing to adjust our strategies.

Robert Templeton, CKA, CRPS, CMFC