Careful tax planning is critical for achieving a client's long-term goals. I have clients today that are saving a lot in their peak earning years, and have maxed out their 401(k)s and HSAs, opened a taxable brokerage account, but still have some excess cash to invest. We have implemented mega backdoor Roth's for clients where it makes sense, and this leaves them with an extra pot of money (tax-free!) that they can draw upon in retirement, or leave to fund their children's future.
When considering income, it's not simply about the amount earned; it's about the amount retained. This is why tax planning serves as a cornerstone in achieving long-term financial goals. Leveraging tax-advantaged accounts and implementing tax-efficient investment strategies will minimize tax liabilities and can result in significant savings over time.