Tax Management

The Need for Tax Management

History has shown that taxes can have a significant effect on clients’ efforts to reach their savings goals.

  • $1 invested in stocks in 1926 would have grown to almost $5,400 by 2016, an average annual return of about 10%

  • Add taxes to the equation, and that same dollar would have been worth just over $1,000, an average annual return of 8.0%

 

Top five tax friendly states for retirees are based on; no state income tax and no or reduced retirement income, estate, property or inheritance tax.

Source: "Overview of Retirement Tax Friendliness," SmartAsset.com, Sept. 2025.

Where Clients Retire Makes a Difference

Managing taxes can be a particularly important goal if your clients plan to retire in an area that is less tax-friendly. Knowing how taxes and the cost of living will impact your clients by state can help them better prepare and save for retirement.

  • Alaska

  • Florida

  • Georgia

  • Mississippi

  • Nevada

Tax Management Topics

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The Power of Tax Deferral
Discover how powerful tax deferral can be in helping clients grow their assets, as demonstrated by three mathematical concepts.
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Asset Location Can Reduce Taxation
A strategy for managing taxation to help clients reach long-term investment and savings goals.
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Lower Social Security Taxes and Medicare Premiums
How tax-deferred investments may help lower taxes on Social Security benefits and Medicare premiums.
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2026 Federal Tax Amounts and Limits
A quick-reference sheet of current federal tax amounts and limits.
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Uncover Opportunity: The Annual 1040 Review
The importance of annually reviewing a client's 1040 to uncover tax management and long-term planning opportunities.
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Related Content

Understanding Taxes
1035 Exchanges: The Potential to Improve Outcomes for Clients
2025 Federal Tax Amounts and Limits
2026 Federal Tax Amounts and Limits
2025 Retirement Plan and Social Social Security Limits Overview
2026 Retirement Plan and Social Social Security Limits Overview
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Want to Talk Further on This Topic?

The Retirement Strategies Group, subject-matter specialists with advanced degrees and designations such as CFA®, CFP®, ChFC®, CLU®, and JD, are ready to help.

 

Call: (800) 722-2333 ext. 3939 or (800) 748-6907 in New York | Email: RSG@PacificLife.com

VLQ0782-00 12/25 E1228

Pacific Life, its affiliates, distributors, and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.

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Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. 

Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company. 

The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.

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