If you’ve worked hard to build up significant wealth for you and your family, the last thing you want to do is start giving pieces of the pie away to third parties. Tax planners, financial advisors, legal experts, and other professionals in the financial sector all want to be a part of your portfolio management. While it may be tempting to do it yourself (or at least as much as you can), there are many reasons why having a financial advisor is in your best interest.
Think about your financial planning like it’s your car. You can do the occasional minor repair or oil change yourself if you have the time, but you wouldn’t bother learning as much as a mechanic solely to save a few bucks on car maintenance. Just the same, you don’t need to spend all of your time learning how to best manage your portfolio if you have a financial advisor who has the experience. They take care of the big things so you can spend your time the way you want and still have a solid financial plan in place for the future.
This series will go over the benefits of working with a financial advisor and prepare you for your first meeting so you know what to expect. One of the most important benefits of financial planning services is working with a tax specialist, which is why we started with this topic.
The Importance of Tax Planning Right Now
Beginner investors often think of tax planning as an afterthought. They focus on maximum portfolio performance and let their CPA or tax professional take care of the rest. However, tax planning should be a part of your overall investment strategy–not only so that you do things right, but so that you do them to minimize your tax burden and maximize after-tax spending in retirement.
Retirement planning, charitable giving, saving for healthcare, and kids’ college educations are all part of the tax planning process. These are things you should be thinking about every time you invest, not just when it gets closer to April. The sooner you begin to assess your investment strategies with a tax-benefits mindset, the better off you’ll be in your retirement years.
Why Should I Work with a Financial Advisor that Specializes in Tax Planning?
A financial advisor helps you with much more than your investment strategy. They help you determine the best way to spend and invest your money in ways that align with your values, goals, and vision for your financial legacy. Tax planning is an essential step in ensuring you can live the lifestyle you want in retirement and leave something for children, spouses, and charitable causes most important to you.
Tax planning also helps you in the “right now” to ensure your investments are tax-efficient. You want to maximize after-tax spending now and in the future, so working with a financial advisor specializing in tax planning is essential.
Your financial advisor can also help you:
- Prepare complex tax returns and maximize deductions
- Prepare tax-loss harvesting security sales
- Ensure best strategies for capital gains taxation
- Maximize after-tax dollars in retirement
Do All Financial Advisors Provide these Services?
Not every financial advisor or investment firm offers these services to their clients. However, those that do can help you better manage your portfolio. Finding the right investment team that understands your priorities, has the right opportunities to grow your portfolio, and can help you with tax planning is essential to your long-term success.
Talk to your OneAscent advisor about the different tax planning services we provide. We strive to provide a comprehensive menu of services to ensure your financial future is secure both before and after taxes. Plus, we work with you and our family to provide investment opportunities that align with your values and help you do good in the world using your financial blessings.
To learn more about tax planning with a financial advisor, give us a call today.