CPA's are skilled and useful practioners, and important tools in making sure that you are compliant with the tax code and don't pay more taxes than you legally owe... this year. Many people mistake the advice of their CPA for tax planning, that is, the long-term positioning of your income, assets, and other unique circumstances to minimize your tax burden in the future. Matt reminds us that taxes in retirement are not just a one-time annual event. Taxes evolve into a whole system of interlocking parts involving Social Security, RMD's, Medicare premiums, and more. As Matt points out, tax returns look backward at the year behind you. Tax planning, on the other hand, looks forward, evaluating how all these moving parts fit together over years and even decades, to make sure you avoid major tax pitfalls during your wisdom years.

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