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