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“Conducting” the tax strategy of your clients

CPA's are always looking to mitigate their client's tax liabilities. CPA's can coordinate various parts of a client's investment strategy to accomplish this.

A tax professional can act similarly to a “conductor” in an orchestra.  They direct the tune, the instruments used and how the end product sounds.  They can make the appropriate changes as they see fit and understand how powerful their actions are in making the show.

In respect to the financial planning world, a tax professional can direct a client to take steps appropriate to their respective tax planning strategy.  They can recommend different investments, suggest a more aggressive or conservative strategy and can even suggest what needs to be bought or sold in order to minimize liabilities or shortfalls.

Tax professionals need not see this as a burden.  Technology has made it far easier to have a real-time view of a client’s holdings and trading history.  They can also take tax harvesting a step further and recommend allocations that may include an investment that generates income as opposed to a growth stock, which typically does not.

A tax professional acts as a conductor in that they play an important part in the overall financial plan, or “the song”.  If the song “is off”, signifying an inefficiency in the financial plan, the proper changes can be made accordingly.  If an investor is missing an important component of their financial plan, such as a lack of retirement income or a lack of contributions to a retirement plan, the tax professional can guide more assets and resources to addressing that need.

Nothing sounds sweeter to an investor than a portfolio that is addressing their main concerns and needs.  A tax professional helps coordinate their investments and tax strategies, works with their other professional advisers and analyzes information and reporting that comes together to craft an effective financial plan.

Did You Know...

4Thought helps tax professionals track tax loss harvesting and provides investment advisory services to fit tax planning needs.  Craft more effective tax planning strategies and better track your clients’ financial reality.

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