A mid-year job change can create unexpected twists in your tax picture, especially when equity awards are involved.
Watch now to hear how a closer look at one client’s return uncovered a reporting error, reduced his tax bill, and highlighted why a thoughtful review can make a meaningful difference.
Transcript:
A Memorable Moment That Shaped My Work
Hi, I’m Matt Donahue, a financial advisor with Thrive Wealth Management. I want to share one of my most meaningful client experiences, a moment that reminded me why thoughtful financial guidance matters.
I was working with a client who had started a new job mid-year. His income increased, he received new equity awards, and as a result, his tax situation became more complex. He hired an accountant to help. When tax time came, the return showed he owed an additional $30,000 in federal taxes. It seemed plausible given his higher income, so he was ready to pay it.
But something felt off.
Taking a Second Look at a Complex Tax Return
I offered to review the tax return myself. As I dug deeper, I realized his accountant had overreported his realized capital gains by $50,000. Even more surprising, the return didn’t account for capital losses that could offset those gains.
Once everything was reconciled properly, the client wasn’t facing a higher-than-expected tax bill. In fact, he owed $10,000 less than what was originally reported. He was extremely grateful, and I was glad I could make a meaningful difference simply by reviewing the details.
How We Support Clients Through Life’s Financial Crossroads
This story is just one example of how our team helps clients navigate financial complexity. When we meet with a potential client, we take time to understand their full picture: their goals, concerns, cash flow, and long-term priorities.
Many people are surprised to learn their retirement plan isn’t as strong as they thought. Our role is to help them move forward with clarity and confidence.
Building a Thoughtful Savings and Investment Strategy
Together, we build a savings structure around their needs. That often includes a mix of pre-tax, Roth, and post-tax accounts to create tax-diversified wealth. Clients use this structure, along with Social Security and other income sources, to support the lifestyle they want in retirement.
Creating Financial Clarity for Every Client
At Thrive Wealth Management, our mission is simple: help people feel more at ease with their money. Every client’s situation is unique, and we take pride in offering guidance that supports their goals and brings more clarity to their financial life.
If you want to know more about us and how we can help you implement sound tax strategies, contact us today. To schedule a meeting, call (215) 376-5530 or email Matt@thrivewealth.com.
About Matt
Matt Donahue, CFP®, is a Financial Planner at Thrive Wealth Management, LLC, a boutique financial planning firm in Blue Bell, Pennsylvania. Dedicated to helping people gain clarity and confidence in their financial lives, Matt is known around the office for his transparency, responsiveness, and passion for helping clients. He seeks to builds long-term relationships by focusing on each client’s unique goals and needs, guiding them through life’s financial transitions with empathy, insight, and clear communication. Matt takes pride in helping clients make informed decisions, simplify complex topics, and feel confident and empowered about their financial future. He says, “Financial planning is deeply personal, and being chosen to help someone manage their wealth and plan for their future is a massive responsibility.”
Matt began his financial services career in 2013 at United Capital, now a division of Goldman Sachs, where he assisted with creating financial plans, implementing investment portfolios, and contributing to the investment management committee. He earned his BA in Business & Economics from Ursinus College and holds the CERTIFIED FINANCIAL PLANNER® designation. He currently resides in Ambler, Pennsylvania, with his wife and son. Outside of work, he enjoys spending time with family, volunteering with the Association for FTD, and playing basketball and golf. To learn more about Matt, connect with him on LinkedIn.
Disclosure:
This material is provided for informational and educational purposes only, should not be viewed as an exhaustive discussion of the topics presented, and should not be construed as individualized advice for any reader’s personal circumstances. For guidance on how these matters may impact your financial plan or investment portfolio, please contact your Thrive Wealth Management, LLC representative. While the information presented is believed to be factual and up to date, Thrive Wealth Management, LLC does not guarantee its accuracy and, due to various factors, including but not limited to changing laws and regulations, this information is subject to change. All expressions of opinion reflect the judgment of the authors as of the date of publication. Thrive Wealth Management, LLC is not a law firm or an accounting firm, and no content contained herein should be construed as legal or accounting advice. Please consult with the qualified professional(s) of your choosing for legal and accounting advice.
Please visit https://thrivewealth.com/disclosure for additional information regarding the professional designations and credentials discussed. Professional designations and credentials do not guarantee success or any particular investment or financial outcome.
Past performance does not guarantee future results. All investing comes with risk, including risk of loss.
