A recent survey found that most affluent investors want their financial advisor or financial planner to have tax expertise and be able to guide in tax-efficient strategies. With recent changes to the tax code, tax-efficient investing strategies are one of the few ways to keep more of what you make.
As an inactive, non-practicing CPA and investment advisor holding the chartered financial analyst (CFA) designation, I find that my tax background helps better serve our clients. With these dual perspectives, we can:
- Discuss opportunities for clients to increase return without increasing risk.
- Consider tax ramifications of investment strategies before implementation.
- Suggest tax-efficient estate-planning strategies.
- Avoid the negative tax surprises that can happen when your investment advisor doesn't consider your tax situation.
Even small incremental efficiencies can equate to significant amounts over time, depending on your income tax bracket. This does not mean you need to eliminate your accountant or CPA. In fact, we work closely with our clients' CPAs whenever possible. In an ideal world, you have both your financial advisor and your CPA working together to identify ways to reduce your tax bill in the current year and beyond. We don't minimize the CPA's role, we simply look for opportunities to add tax-efficient investment strategies as we help implement long-term financial planning strategies based on your needs and goals.