Individual Taxes

When you think about taxes, you might first think about your accountant. However, a financial advisor can also help you with your taxes. Here are the main ways financial advisors can make your taxes more efficient long after
April 15
th has passed.

The main purpose of having investments is to increase your wealth. Your financial advisor can help you understand the best ways to deposit and withdraw money from your investments to minimize the amount of taxes you’re paying. They use strategies such as tax-loss harvesting, offsetting gains with losses, and maximizing retirement funds to help you be more tax-efficient. The more you save on taxes, the more money is left in your investment accounts to keep growing. This strategy compounds its own benefits.

A financial planner can give you peace of mind by helping you avoid costly tax mistakes. Not only can mistakes wipe out savings and investment returns, they can also take a lot of time to correct. By keeping track of your capital gains and losses, financial advisors can create a file of your net results. In tandem with your accountant, advisors can make sure your taxes are filed correctly.

When it comes to taxes, financial planners have one major advantage over accountants: financial planners have a long-term perspective. Accountants may only be focusing on the current year’s taxes. However, financial advisors can help you create a solid tax plan that will save you money all year long—not just when you’re filing your taxes. If you own your own business, it’s especially important to have a financial advisor help you identify cash flow strategies to minimize expenses and maximize tax returns that will last for years.

Prepare for the Future

Financial planners can help you prepare for future events, such as estate planning,
receiving inheritances or trusts, making major charitable donations,
and retirement—
all while keeping taxes in mind.

Financial advisors can help you answer retirement tax questions such as:

  • How much tax will I have to pay on my 401(k) withdrawals? 
  • How do I maximize my Social Security benefits?
  • What is my tax strategy for taking required minimum distributions from my retirement plans? 
  • How much money can I take out of my retirement accounts each year without getting penalized? 

By working with a financial planner, you can make your money work for you by saving on taxes both now and through your retirement years.

Let Your Financial Advisor Help with Taxes

Your retirement funds, savings accounts, and mortgage have all taken years of consideration. Why hasn’t your tax strategy? Financial planners have the expertise to save you taxes on investments, help you avoid tax mistakes, and plan for long-term tax savings.