"Do I Still Need Tax Planning?"
A couple of my partners and I were recently having a conversation with a prospect (we’ll call him Greg) regarding the services our firm provides to clients and how we set ourselves apart. Greg has worked with other financial advisors in the past and so was somewhat familiar with the basics of asset allocation and risk management. However, one particular service did catch his attention. He said, “I have someone who does my taxes. Do I still need tax planning?” It’s a question I think crosses many investors’ minds but doesn’t get asked enough.
The answer is…well, maybe. If you have a tax advisor that understands your full financial picture and is helping you proactively optimize your ongoing tax liability, there may not be much for your financial advisor to add in this area. There are plenty of great CPAs out there that serve their clients well by looking beyond the current tax returns and receipts you’ve laid in front of them. At Provista Wealth Advisors, we do not try to replace these professionals, supplant them, go around them, or exclude them. We love working closely with our clients’ CPAs to make sure that you are receiving the best advice and planning possible.
However, one of the hard truths of the industry is that many people have a professional who only does their tax preparation and filing for them. Many taxpayers have switched to software to help them file themselves. This is very different from tax planning. If the only time you see or talk to your tax person is when you are dropping off the forms for tax filing, I doubt you’re getting any real planning. That’s not a shot at tax preparers. That’s their job. Just make sure you understand what you’re paying for (and receiving) and what you’re not.
So then, what do I mean exactly when I say “tax planning?”
Well, here’s what it’s not. We don’t prepare or file your returns. We don’t interpret tax rules for you. We don’t look for ways to avoid taxes, but we do look to optimize. We don’t advise on tax shelters, and we won’t tell you what your business should deduct and what it shouldn’t.
On the other hand, here are some of the more common strategies we discuss and encourage our clients to consider:
So back to Greg’s original question, “Do I need tax planning?” I would say it’s rare to come across a client to which none of the previously mentioned strategies has some impact. The likelihood is that if you need financial planning, you’re going to need some level of tax planning as well. Make sure that you have the right professionals around you to take advantage of every opportunity you can.
Provista Wealth Advisors in Greenville, SC, provides peace of mind through personalized asset management, expert estate planning, and retirement planning. Navigate your financial journey with confidence. Rest Assured, We Have A Plan. Give us a call at (864) 696-2410 or send us a message to schedule your free introduction meeting.