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It’s that time of year again.
You’re opening envelopes.
Downloading 1099s.
Trying to remember if you actually made that charitable donation last May… and where you put the receipt.
Welcome to tax season.
For most Americans, this is when taxes get attention.
But here’s the problem-We tend to use “tax filing” and “tax planning” like they mean the same thing.
They don’t.
and confusing the two is one of the biggest financial mistakes I see.
Tax Filing=Looking in the Rearview Mirror
Tax filing is what happens after the year is over.
You gather documents.
Your CPA prepares the return.
You either write a check or wait for a refund.
The goal of tax filing is simple-file correctly, follow the rules, & avoid penalties.
That’s important. No one wants a love letter from the IRS.
But let’s be honest — by the time you’re signing your return, the year is done. The decisions that determine your tax bill? Those already happened.
Filing is historical.
It reports what you did.
It does not change it.
Tax Planning=Designing the Outcome Before It Happens
Tax planning is different.
It’s proactive.
It’s forward-looking.
It’s strategic.
Instead of asking, “What do we owe?”
We ask, “What can we control?”
Comprehensive tax planning touches almost every part of your financial life.
It’s not about one deduction.
It’s about long-term coordination.
Think of it this way:
Tax filing is the scoreboard.
Tax planning is the game strategy.
If you only focus on the scoreboard, you’re reacting.
If you focus on strategy, you’re influencing the outcome.
Here’s something I see often.
Many people assume:
“My CPA would tell me if I was overpaying.”
Maybe.
But most tax preparers are hired to prepare and file accurately — not to redesign your retirement income strategy, coordinate your withdrawals, evaluate Roth conversion timing, or stress-test survivor tax brackets.
and that’s not a criticism. It’s just a different job.
Real tax efficiency in retirement requires coordination between:
When those pieces operate solo, inefficiencies creep in.
And inefficiencies = taxes.
During your working years, your income is fairly predictable.
In retirement? It’s flexible.
and flexibility is powerful- if you use it correctly.
You often have:
The order you pull from them matters.
The timing matters.
The bracket you land in matters.
Even your Medicare premium can be affected.
Small decisions today can echo for decades.
Tax filing and tax planning are two completely different processes.
You need both.
One looks backward.
One looks forward.
If your entire tax strategy happens between February and April, you’re likely leaving opportunities on the table.
And in retirement, that can add up to a meaningful amount of money over time.
If you’d like to take a more proactive look at how your retirement income, investments, and tax strategy are working together — or not working together — we’re happy to review it.
Because the goal isn’t just to file correctly.
It’s to design your financial life in a way that keeps more of what you’ve worked so hard to build.
Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
Financial Advisors in Cedar Rapids, IA
Helping you create a stress-free, simplified retirement
Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.