Broker Check

Tax

Business owners as well as high wealth individuals should discuss tax planning strategies with their professional consultants, namely their accountants and financial advisors.

The reason is simple: These experts can offer you the best advice regarding your financial and investment decisions and how to position your assets to retain more wealth while reducing your overall tax liabilities. 

A financial planner takes a much broader or holistic approach to planning and executing a strategy to increase your wealth. Your accountant primarily focuses on your tax responsibilities in any given year.

A financial advisor can help with the tax planning together with your accountant to avoid unnecessary tax pitfalls that can cost you significantly after years of profitable investment performance.

Without proper planning, your estate may not be distributed as you’ve envisioned.

An effective estate plan uses specific strategies to complement your individual goals.

Here are Four Reasons to Review Tax Implications with Your Financial Advisor for Long-Term Retirement Planning:

  1. Your financial advisor and accountant can both impact your tax obligations
    While both are important, your financial advisor may actually address more of your overall finances. The financial advisor may have in-depth insights into how best to make timely financial decisions to benefit you and your family.
  2. One tax mistake could eliminate years of profitable investing
    Your financial advisor should always be looking out for the right investment opportunities for you as well as any tax implications that come along with it.
  3. Being aware of your tax implications can oftentimes help you to accumulate greater wealth
    Be aware that building wealth is not just about your tax liability today. Long term financial planning can make a difference in the amount of taxes you pay over many years, which will enable you to have more money to invest over the long term
  4. Planned correctly, you can have the benefits of building wealth and maintaining a lower tax rate
    Working with a financial advisor that gets to know your overall financial picture, you can receive investment strategies that will help you retain more wealth.

Planning for retirement including Roth IRA’s which can grow tax free and taken out and converted to pay less taxes after the age of 59½ . The strategy here is to pay lower taxes before you reach 70½.

We encourage you to have your accountant and your Financial Advisor work together to plan your financial future.

The take away is: Your accountant understands what needs to be done regarding your taxes year to year while your financial advisor is licensed to give you financial advice, and primarily help you grow your wealth wisely over a longer period of time.

Confer with both of them to make sure you don’t pay more taxes than you need to while utilizing the savings to take advantage of the many opportunities to grow your wealth positioning.

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