For high earners, the difference between what you owe and what you could owe often comes down to proactive tax planning strategies. With the right approach, you can reduce your taxable income, optimize your deductions and credits, and structure your financial decisions to minimize your tax bill and maximize tax savings.
At Schmidt Financial Management, we work with tech executives and high-income professionals to build integrated tax strategies that align with their equity compensation, investments, and retirement accounts. Our approach is proactive, not reactive—because the biggest opportunities often come from decisions made well before you file your tax return with a tax advisor.
High-income tax planning is about being intentional with your income, investments, and expenses so that you’re not paying more in taxes than you need to. It's a key part of how we help clients align their financial decisions with their broader goals.
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Right now, we’re looking closely at strategies like maximizing tax-advantaged accounts—think traditional and 401(k)s, Roth IRAs, and HSAs—as well as managing long-term capital gains and incorporating charitable giving. We're also helping clients identify deductions they might qualify for, including certain medical expenses and property taxes.
Ultimately, it’s about taking control of what you can. The goal isn’t just to reduce this year’s tax burden—it’s to support your long-term financial goals, including retirement readiness, liquidity, and estate planning.
The U.S. operates under a progressive tax system. That means only the portion of your income that falls within a given federal income tax bracket is taxed at that rate—not your entire income.
We help clients understand how this actually plays out. For example, part of your income might be taxed at 24%, but only the dollars above the bracket threshold get taxed at the higher 32% rate—your earlier income stays at the lower rates. The key is managing when and how income is recognized so you can minimize the amount that gets taxed at those higher marginal rates and optimize your overall tax liability.
That’s where timing becomes a powerful tool. Whether it’s a bonus, RSU vesting, a business windfall, or retirement withdrawals, we help clients plan around these events to keep more income in the lower brackets.
With strategies like Roth conversions, charitable giving, or capital gains harvesting, tax brackets become less of a hurdle and more of a lever. With the right planning, there’s a lot you can control—and that can make a real impact over time.
For high earners, reducing taxable income is absolutely possible—but it takes planning. And the reality is, the more income you earn, the more complex those opportunities become. That’s why working with an advisor who understands both your financial life and the tax landscape can make a real difference.
At Schmidt FM, we build these strategies into long-term plans that reduce taxes and support your bigger financial picture.
These moves need to be executed carefully to stay within IRS rules. We incorporate them into your long-term plan with considerations towards remaining compliant and effective.
Where you hold investments matters just as much as what you invest in. Optimizing asset location can reduce taxes without changing your actual portfolio allocation. Schmidt's Tax Dashboard helps clients to see this strategy in action.
Here’s how we help clients approach it:
We also help clients:
If you’re a high-income investor, managing capital gains is critical. Holding assets for more than a year qualifies you for lower long-term capital gains rates—but smart planning can take that even further.
We’re seeing great outcomes with:
It’s not just about saving money in one year—it’s about building after-tax wealth over
time.
Smart retirement planning can dramatically reduce lifetime tax liability.
Roth conversions, for instance, allow you to pay taxes now on assets moved from a traditional IRA to a Roth, enabling tax-free withdrawals in retirement. And they’re especially useful in low-income years or early retirement.
We guide clients through:
When done thoughtfully, this can dramatically reduce your lifetime tax bill.
Charitable giving can be both generous and strategic. We help clients align their giving with high-income years for maximum tax impact—while staying true to their values.
Some of the tools we use:
It’s about using your wealth to support what matters—while staying tax-smart.
Real Estate Tax Strategies
We work with clients to align real estate investments with broader tax and estate planning goals.
Cryptocurrency Tax Considerations
The IRS treats crypto as property, meaning every transaction is potentially taxable. This includes trades, staking rewards, and even airdrops.
If clients hold crypto, we highly recommend implementing the following practices as a way of managing a potentially volatile investment:
For high earners, tax strategies work best when they’re part of a coordinated, long-term plan. At Schmidt FM, we bring clarity, strategy, and timely execution to help you reduce your tax burden, preserve wealth, and move confidently toward your financial goals—year after year.
We believe the foundation of great tax planning is staying organized. That means keeping accurate, up-to-date records on income, investments, equity compensation, and charitable giving. Digital tools can help streamline this, but the real value comes from turning that information into strategy.
That’s where we come in.
At Schmidt FM, we partner closely with CPAs and estate attorneys to take the lead on proactive, long-term tax planning. Our goal is to make sure your day-to-day decisions are always aligned with your broader financial picture. Software is useful—but it can’t replace strategic thinking.
We’re also helping clients stay ahead of the tax trends that matter most right now:
Bottom line: staying compliant isn’t enough anymore. For high earners, the real edge comes from planning ahead—so when policies tighten or reporting requirements change, you’re not scrambling. You’re already prepared.
High earners need proactive tax planning that keeps pace with policy changes and enforcement trends—because when rules tighten, the advantage goes to those who planned ahead.
At Schmidt Financial Management, we help you design and execute a tax plan that may help reduce liability while also supporting the bigger picture of your wealth. From equity compensation to retirement income, our goal is to help you keep more of what you earn—and make it work harder for your future.
📊 Ready to rethink your tax strategy? Talk with a tax-smart advisor at Schmidt FM today.
Waiting until tax season to start planning. Most tax-saving opportunities disappear if you wait until you’re filing. We work with clients throughout the year to identify and act on strategies while there’s still time to make an impact.
It’s not either-or. Smart tax planning often complements growth—by placing the right investments in the right accounts (tax-efficient asset location), managing capital gains, and using vehicles like HSAs or Roth IRAs strategically. You don’t need to take your foot off the gas to be tax-savvy.
Roth conversions can reduce future taxes by moving funds from tax-deferred to tax-free accounts. They’re especially powerful in low-income years, early retirement, or when you expect higher future tax rates. Timing and tax bracket management are everything here.
Yes. CPAs are essential, but they typically focus on filing and compliance. At Schmidt FM, we focus on planning ahead—integrating your taxes with your investments, equity compensation, retirement, and estate goals. It’s not about replacing your CPA—it’s about giving them better data and direction.
Equity compensation comes with real tax complexity. We help you understand how and when income is recognized, coordinate with your CPA on withholding, and build a strategy for exercising and selling that reduces surprise taxes and supports your broader financial goals.
Absolutely. Tools like Donor-Advised Funds (DAFs), Qualified Charitable Distributions (QCDs), and donating appreciated assets can all reduce your tax burden while supporting causes you care about. We help clients align giving with their high-income years for maximum impact.
Start planning now. That might include accelerating deductions, increasing retirement contributions, deferring income where possible, or using charitable strategies. We’ll help you model scenarios and make decisions that smooth out your tax exposure over time.
At least annually—and any time you experience a major life or financial change: job transitions, big bonuses, equity events, business sales, relocation, retirement. Tax planning isn’t a one-and-done—it’s an ongoing part of smart wealth management.