Tax Planning Is NOW Table Stakes

If you think tax planning is just an “extra” your advisor might offer at the end of the year, think again. The latest data from Cerulli and Parametric makes it clear: for high-net-worth clients, proactive tax strategy isn’t a nice-to-have—it’s the ante for getting a seat at the wealth management table. Nearly 70% of affluent investors now say tax reduction is a must-have service, yet fewer than half of advisors are delivering on that expectation.

As I told The Daily Upside for their article, the game has changed. “Clients now recognize that taxes aren’t a once-a-year headache. They’re a crucial piece of every wealth and retirement strategy, especially in the face of sweeping tax law changes that create moving targets and new phase-outs.” With Americans paying over $206 billion in capital gains taxes last year, even the best investment returns can be quickly devoured by Uncle Sam if taxes are an afterthought instead of a core part of the plan.

In practice, that means stepping up from old-school, end-of-year tax loss harvesting to more modern, integrated approaches—sometimes managing tax impact weekly or even daily. Transition management, like rolling over old 401(k)s, is another pain point: too many advisors make the mistake of restructuring portfolios in a single swoop, creating massive tax bills in the process. As more clients ask about the effects of new laws—such as the One Big Beautiful Bill Act—on Social Security, Roth conversions, and legacy planning, advisors who know how to minimize tax friction at each turn are quickly setting themselves apart.

Bottom line? Tax planning used to be a value-add. Now, as Cerulli’s Scott Smith put it, “if you’re not doing it, you can be at a distinct disadvantage.” The result: every aspect of wealth management—from investments and withdrawals to gifting and estate decisions—deserves a tax lens. In an era when rules are shifting fast, having a holistic, forward-looking tax strategy isn’t just smart; it’s essential.