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Ever see a soccer player sprint the entire game? No chance, right? In soccer, just as in effective tax planning, it’s all about adjusting your speed and knowing when to go full throttle versus when to conserve energy.
A Lesson from My Son’s Soccer Game
I learned this concept recently while watching my son’s soccer game. My son was running at the same medium pace the entire time, missing opportunities to intercept the ball because he wasn’t adjusting his speed. We talked about breaking his game into three gears: slow, medium, and fast. When he needed to seize a moment, he could sprint, but for downtime, he’d move slower to conserve energy.
This same approach applies to tax planning. You don’t need to be sprinting or intensely focused on taxes all year long. Instead, you vary the speed, knowing when to go all in and when to scale back. For many, tax planning happens at only one speed—if at all. But to create a real impact, your tax planning strategy needs to adjust as the year progresses.
Adjusting Speed Throughout the Tax Year
In soccer, adjusting speed and pacing keeps players ready to respond in critical moments. Likewise, successful tax planning requires varying levels of focus throughout the year:
- Walking Mode: In the middle of the year, you’re focused on growing your business and adding value for your clients. Taxes aren’t a major focus during this time, and that’s okay.
- Jogging Mode: As you move closer to the end of the year, tax strategy becomes more relevant. You start adjusting, looking at your tax position and beginning some preliminary planning.
- Sprinting Mode: Around October and November, it’s time to sprint with tax planning. This is when you should dive deep, focus on strategies to lower your tax bill, and make those key decisions. By December, you can scale back to a jog and return to a walk in January.
This pacing keeps you prepared, sustainable, and responsive to your tax planning needs. The truth is, if you’re in “walk” mode right now, you’re probably missing opportunities to save.
Avoid the Cost of Missing Out
If you’re always at a steady, low-speed pace with your tax planning, you’re missing key opportunities to save money. Just as my son needed to shift into high gear to intercept the ball, you need to shift into high gear for your tax planning at the right times. Right now, for example, is the sprint season for taxes—don’t miss it.
Creating a Sustainable Tax Planning Strategy
This soccer analogy helped me rethink how I pace my own approach to tax planning. Maybe there are areas where you need to slow down, and others where it’s time to pick up speed. By varying your focus, just as an athlete varies their intensity, you can make tax planning more effective and sustainable.
Conclusion: Adjusting Your Tax Speed for Success
Take a lesson from soccer and consider the areas in your life and finances where you need to adjust your speed. Sprint when it’s needed, jog to plan, and walk to conserve energy. The right tax planning strategy isn’t about always being “on”; it’s about knowing when to apply focused energy and when to pull back. Just like in soccer, your financial health will benefit from adjusting your speed to maximize efficiency and minimize unnecessary costs. So, ask yourself: Are you pacing your tax planning correctly? Or is it time to shift gears?