The Biggest Mistake I See High Income People Making Today

From WestPac Wealth Investments · 8:47

Show by Westpac Wealth Partners

Are high-income earners confusing tax deferral with tax avoidance?In this episode, we take a closer look at one of the biggest financial planning mistakes that can affect high-income business owners, executives, and W-2 employees: continually deferring taxes without considering what that future tax liability could look like.Tax deferral can be a valuable strategy, but it doesn’t make the tax disappear. Large balances in tax-deferred accounts can eventually create significant tax consequences through required distributions, retirement income, and legacy planning.We discuss why it may be worth looking beyond simply maximizing tax-deferred accounts and considering other strategies, including Roth accounts, taxable investments, capital-gain-oriented investments, and tax planning opportunities available to business owners and highly compensated executives.The goal isn’t to say that tax deferral is bad. It’s to make sure you’re intentionally building a diversified financial plan that considers both your investment goals and your future tax picture.As we approach the end of 2026 and begin planning for 2027, now may be a good time to take a closer look at how much of your wealth is being deferred—and whether that strategy still makes sense for your long-term plan.

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