How A Tax Advisor Can Perfect Your Financial Plan

    Published: 06-16-2009
    Views: 4,205
    Karen Cady, Partner with Plante Moran’s Wealth Management tax team, discusses how including your tax advisor in your financial planning process can benefit you.

    Karen Cady: A tax return tells a story about who you are, whether you have an active business as a beneficiary of a trust, a charitable inclined or have various classes of investments in your portfolio?

    However, your tax return reports the results of decisions you have made in prior years so tax frame is often too late to ask for advise and how your investment strategy affects your tax obligation.

    Hi! I am Karen Cady, I am a partner with Plante Morans Wealth Management Tax team and I am here to discuss how including your tax advisor in your financial planning process can benefit you not only at the end of the tax year but throughout your financial life-cycles.

    You dont have to wait until your end to begin your tax planning. Consider scheduling a meeting some time after May 1st when your prior year tax results are in. During this meeting have a proactive discussion about your balance sheet, financial goals and discuss what may be happening in the coming years.

    Depending on the complexity of your balance sheet you may benefit from talking to a tax professional before making investment decisions. They can advise how investment decisions will impact your tax obligation before its too late to make any changes. If you are able to have your financial advisor and tax advisor collaborate and create a holistic plan with you so much the better.

    Tax planning should drive tax compliance not the other way around. Consider these questions to make sure you are in control of your tax plan.

    Is your overall personal financial plan tax efficient? Does an investment have multi-state filing requirements that may make it less lucrative?

    If you are doing estate planning, are there timing considerations that may work to your advantage?

    Thinking about these questions in advance and planning you had with guidance from your tax advisor will work to your advantage and give you a more solid prediction of what to expect concerning your future tax obligations.