Making yourself indispensable to affluent clients starts with understanding what matters most to them. And one of the things clients want the most is help to reduce their tax burden. Recent research from Cerulli Associates shows that 70% of affluent investors say it’s important for their wealth manager to help them reduce taxes, but only 47% of advisors have tax planning on their menus. This leaves a competitive gap that you can fill.
In fact, tax planning is quickly becoming a key differentiator among top-performing registered investment advisory firms (RIAs). Some of these leading RIAs are actively expanding their services to provide more holistic, client-centered guidance, which includes tax strategies. For many advisors, this means partnering with asset managers, technology providers, or other specialists to deliver AUM solutions that contain sophisticated tax management components.
But there are other ways you can deliver tax planning help.
Providing Tax Value In Retirement: RMDs
Even for advisors who don’t provide investment services, or who are not ready to invest in more technology, foundational retirement tax strategies, like annual required minimum distribution (RMD) planning, are a great example of where you can add value. And keep in mind that clients don’t know what they don’t know about RMDs!
A recent breakdown of the most common (and surprising!) RMD mistakes revealed just how easy it is for retirees to make costly errors, and how you as an advisor, can provide important insight in helping prevent them. Be sure to let clients and potential clients know that this is part of the value that you provide to them as their financial advisor.
Remind Your Retirement Clients About RMDs
1) RMDs are not automatic, and not all institutions or custodians provide reminders. Retirees must proactively remember to take RMDs.
2) Clients must take RMDs from all their traditional (non-Roth) qualified accounts annually, including IRAs, 401(k) plans, 403(b) plans, 457(b) plans, TSPs, SEP IRAs, SIMPLE IRAs and similar types of accounts.
3) Depending on type, there are different rules regarding taking a percentage of the aggregated amount held in multiple qualified accounts, versus requiring separate withdrawals from each different account.
4) The deadline for RMDs is December 31 each year, not April 15. Missing the deadline can come with a 25% excise penalty along with taxes owed.
5) For clients taking their very first RMD, the distribution must be taken by April 1 of the year following the calendar year in which they reach age 73.
6) Miscalculated amounts may also come with a 25% excise tax. Suggest to your retirement clients that they may want to simplify and consolidate accounts in retirement.
7) The SECURE Act, which took effect January 1, 2020, changed RMD rules significantly, and many people who inherit taxable qualified accounts are still unaware of how this affects them. Non-spousal heirs must take RMDs, and empty inherited accounts completely within 10 years of inheritance. Surviving spouses must take RMDs, too. The IRS uses several tables to calculate RMD amounts owed.
8) For clients who give to charity, they may not know that rather than giving cash, they can directly distribute all or part of their RMD to their chosen nonprofit, reducing their taxable income by that amount. These are called qualified charitable distributions (QCDs). But there is a caveat. Some financial institutions don’t break down or delineate that the distribution was a charitable contribution—they just send a 1099. Proactive tax management and communication with CPAs is critical to make sure these amounts are deducted rather than added to the tax return!
9) Working with your clients well in advance of the RMD age can bring more opportunities to reduce their RMDs in the future, and therefore lower their taxable income in retirement (not to mention mitigate tax consequences for heirs). Analyses and calculations for potential Roth conversions or other strategies as part of a comprehensive retirement plan can really help your retirement client visualize what could be done to mitigate taxes for the long-term, and keep them by your side for life.
Advisors who continue to help clients with RMD planning and annual calculations and reminders don’t just help clients stay on track; they can turn challenges and potential pitfalls into strategic opportunities to demonstrate expertise, reinforce reliability, deepen trust, and strengthen long-term relationships.
So, make yourself indispensable. Call your Quantum consultant at 800.440.1088 to learn how.
Sources:
https://www.financialadvisoriq.com/c/4991394/692364/affluent_investors_want_planning_cerulli
https://insights.smartasset.com/7-of-the-biggest-rmd-mistakes-people-make
https://www.thinkadvisor.com/2025/09/23/the-worst-rmd-mistakes-clients-made-advisors-advice/
Gladys Heitzman is a copywriter at Quantum, crafting a wide range of content such as newsletters, blog articles, emails, and legacy post updates, each incorporating in-depth research and optimization. She holds a bachelor’s degree in political science and history from Wichita State University, and before joining Quantum, gained experience in government and nonprofit sectors, specializing in policy, publishing, and technical writing.
