Important Year-End Tax Tips That the Wealthy Should Know Now

tax tips

Important Year-End Tax Tips That the Wealthy Should Know Now

High-net-worth individuals have a lot to think about in their often fast-paced financial dealings, not the least of which is how to save on their taxes and keep as much of their wealth from the taxman as possible. Many high-net-worth individuals make a lot of their income from smart investing. Smart investing takes careful planning and organizing along with the right strategies, in order to be successful. After achieving a high level of wealth, investors then need to know the right tax-saving strategies to be able to maximize their gains. The problem is many people, including wealthy investors, treat taxes like they are only a year-end event. However, in actuality, there are several important tax tips that people should know now, including high-net-worth investors. Let’s take a look at some of those important tips.

Take Care of Retirement Contributions

Many wealthy individuals pay the highest tax rates on their income: 36 percent or even as much as 39.6 percent. However, one way to offset some of these taxes is by contributing regularly to your retirement account. The problem is many investors overlook this until the end of the year when it is often too late. 401k and 403b plans allow you to contribute up to $18,000 annually, but they also limit what percentage of each paycheck you can contribute. Therefore, it’s important to make regular contributions throughout the year in order to reach the maximum allowable amount. That’s significant, because at the highest marginal rate, you can save more than $7,000 in taxes if you contribute $18,000. Plus, if you’re 50 or older then you can contribute an extra $6,000 more annually, which adds on another $2,000 to your tax savings.

Track Capital Gains & Losses All Year

Investors can experience capital gains and losses at any given time throughout the year, which means those gains and losses need to be managed and harvested properly during the entire year, instead of just at the end of the year. Many investors sell their stocks and other investments at the end of the year in order to cover gains they have made from other funds and reduce their taxes. However, often the smarter move is to actually use your losses on the books from proactive investment decisions, instead of based on tax savings.

Keep Your Estate Under Control

One of the tough decisions wealthy people often have to make is deciding when to move away from asset accumulation and start focusing on reducing the amount on their taxable estate. The timing of this decision is important, because failing to act in time means your estate will continue to grow and so will your tax bill. One way to reduce your tax bill is to take advantage of the annual gift tax limit. At $14,000 per beneficiary you can basically give away free money because it won’t be taxed. If you want to donate to five individuals you can give away up to $70,000 tax-free.

Contact an Experienced Tax Advisor

Smart investors make a lot of money but it takes a tax savvy advisor to help smart investors save on their tax bill. That’s why you should contact GROCO for help with tax planning for your high-net-worth income. We will help you save on your tax bill, even if you are a wealthy investor. Call us today at 1-877-CPA-2006.


We hope you found this article about “Important Year-End Tax Tips That the Wealthy Should Know Now” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4 (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

Chester Wooley on Where Philanthropy and Venture Capital Meet

Geoff “Chester” Wooley, Co-founder Patamar Capital and current board member of SKS Microfinance, India’s largest microfinance bank, discusses where philanthropy and venture capital meet on Alan Olsen‘s American Dreams Show. Transcript:   Geoff Woolley  0:00   Philanthropy and a family office’s investing is quite separate from each other. Depending on the size of the family office, its foundation or…

The Future of ESG and Impact Investing with Michael Meehan

The Future of ESG and Impact Investing with Michael Meehan

Michael Meehan, Co-founder, Canoe Carbon, Forum for Impact, and former CEO, GRI discusses the future of ESG and impact investing on Alan Olsen‘s American Dreams Show. Transcript:   Alan Olsen  Michael, you have a remarkable story. And for the listeners here, can you share your background and how it got you to where you are today?   Michael…

Becky Douglas on Saving Leper Colony Children

Becky Douglas on Transforming Leprosy Colonies in India

Becky Douglas, founder of Rising Star Outreach, a non-profit dedicated to saving and transforming the lives of children and their parents affected by leprosy in India, discusses how it became reality on Alan Olsen’s American Dreams Show. Rising Star Outreach born from tragedy. Becky’s journey to helping leper colonies in India began with a personal tragedy that transformed…

Unveiling Entrepreneurial Success with Randi Brill

Unveiling Entrepreneurial Success with Randi Brill

Randi Brill, best-selling author and CCO of Just Call Randi Design Agency discusses unveiling entrepreneurial success on Alan Olsen‘s American Dreams Show. Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Randy brill. Ready welcome to today’s show.   Randi Brill Thank you, Alan. I’m glad to be here.  …