The Hole in the Bucket You Keep Filling

Not surprisingly, there’s an old country song about a bucket with a hole in it. 

 If you’re reading this, you’re likely good at pouring more water into your bucket. You focus on revenue, margins, and growth. You work hard to increase what comes in each year. 

 But far fewer of us stop to check whether the bucket itself is leaking. A small hole does not feel urgent. You do not notice it day to day. But over time, it quietly drains away the results of a lot of hard work. 

 That leak often shows up in the form of an expensive, silent business partner: the IRS. 

 The IRS does not help grow the business. It does not improve systems or culture. But without intentional planning, it can quietly take more than its fair share of the value you are creating. 

 When tax planning is handled reactively, small inefficiencies become a steady leak. Not dramatic. Not obvious. But enough to reduce liquidity, slow diversification, and widen the Wealth Gap. 

 Good tax planning is not about being aggressive. It is about being intentional. When done well, it becomes one of the cleanest ways to convert business success into lasting personal wealth. 

 Let’s get to work. 

Tools of the Trade: The Tax Efficiency Gut Check

Ask yourself three questions: 

 1. Am I paying taxes based on last year’s structure or today’s reality? 

Businesses evolve. Tax strategies often stay frozen in time. 

 2. Am I taking income in the most efficient way or just the easiest way? 

Salary, bonuses, and distributions are not interchangeable. Each choice has consequences. 

 3. Do I know how much tax I am paying beyond what is truly required? 

Not what I owe. Consider what could have been avoided with better planning. 

If you cannot answer these clearly, value is likely leaking out of the business.

Firm Foundation: Where Tax Strategy Becomes a Growth Constraint—or a Strength

Closing the Wealth Gap is not just about growth. It is about efficiency. 

 Every unnecessary tax dollar paid is a dollar that cannot build liquidity, diversify your balance sheet, or reduce dependence on a future exit. Over time, that drag compounds. Poor tax planning widens the Wealth Gap in three quiet ways:

 First, it drains liquidity. 

Cash sent unnecessarily to the IRS cannot create options. Liquidity is what gives you flexibility when opportunity or adversity shows up. 

 Second, it distorts decisions. 

Reactive tax planning leads to compensation and distribution choices driven by short-term pain instead of long-term value. 

 Third, it delays wealth transfer. 

Closing the Wealth Gap requires intentionally moving value out of the business over time. Inefficient strategies slow that process and increase reliance on a single future event. 

 Effective tax planning is not about paying less at any cost. It is about aligning structure, income, and long-term goals so taxes support the plan instead of quietly undermining it. 

 Two practical takeaways: 

1. Revisit your tax strategy when the business changes, not just once a year. 

2. Treat taxes as part of your Wealth Gap strategy, not a standalone compliance task. 

How We Partner With You

We help business owners integrate tax planning into a broader value strategy. 

 That means working closely with your CPA, and when helpful, drawing on our network of experienced CPAs who understand the nuances of small-business tax planning to align entity structure, compensation, and long-term planning so business success becomes personal progress. Our role is to help ensure the wealth you are creating stays aligned with your future, not unnecessarily shared with a silent partner who adds no value. 

 Sometimes wisdom shows up plainspoken. Plug the leak, and everything else works better. 

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. 

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