Are You Ready To Grow As a Financial Advisor?
Most advisors are familiar with tax preparation, and some are even knowledgeable about tax planning. But one of the greatest ways to elevate your clients’ financial situation is to deliver proactive tax management.
With The Tax Management Journey®, we’ve outlined seven critical checkpoints you can use to simplify the process with your clients. We’ve developed tools and financial advisor strategies within each concept. These help your clients understand how your firm’s proactive tax management helps them increase their odds of financial success.
After all — entities don’t tax all money the same.
There’s an order to how clients should accumulate money and take distribution upon retirement to help increase net after-tax cash flow. We leverage the tax-efficient funnels tool to help them visualize how to save for retirement and turn retirement assets into tax-efficient income.
The U.S. tax system is a dynamic, pay-as-you-go system. Many opportunities exist for proactive tax management within the brackets. We use a tax measuring cup visual aid to educate your clients on ordinary income tax brackets and capital gain tax rates. It also illustrates annual tax management opportunities.
Tax traps lie in the code. Within this concept, we share ways to articulate the importance of proactive tax management before your client takes major withdrawals from their retirement accounts or elects to receive Social Security income.
It’s not about what you make — it’s about what you get to keep. Taxes can create a major drag on investment returns. It’s never been more important to ensure you allocate your client accounts with the right type of investments. That’s true not only for diversification but also from a taxation perspective.
We have tools that illustrate to your client that they should hold certain investments among their accounts for greater efficiency:
We arm you with tools to help your clients maximize both charitable and intra-family gifting within this tax management concept. As a result, they can minimize their income tax and their families’ future transfer tax.
Everyone has to pay taxes, but the U.S. tax system allows flexibility on when you pay. You can defer income through retirement accounts or deferred asset sales. You can also recognize income through Roth conversions or strategically timed asset sales.
This creates incredible opportunities to amplify your value with proactive tax management of these accounts and assets.
Tax management is a moving bull’s-eye. Your clients’ personal circumstances change each year. Tax management is about evaluating the tax policy landscape and your clients’ unique needs. You then strategically think several moves ahead to ensure you maximize their income and minimize their taxes.
The process of preparing and delivering annual tax returns guarantees you a yearly opportunity to meet potential clients.
This doesn’t just spark their interest in becoming a financial advisor services client. It also proves how valuable your wealth management services are. This allows you to charge higher planning fees and provide your clients with better service.
Learn tools and techniques to increase your profitable business lines by transforming tax clients into leads for your services.
Even if you don’t have a tax practice, our financial advisor training program can help. It introduces opportunities to partner with an existing tax firm to borrow from its client list and increase your revenue.
At C2P, we’ve created training resources for advisors like you to succeed:
These resources frequently include the following:
The problem with tax preparation and tax returns is that you’re essentially a historian talking to clients about past events. By the time the return is complete, you don’t have time to proactively make changes that could’ve saved them real money.
Tax savings strategies become a year-round activity with tax management services. When the clock strikes midnight on December 31, most tax savings ideas for that year are gone forever.
Imagine you’re going to build a house. The first thing you do is hire an architect to draw up a blueprint. This is similar to tax planning.
A client may come to your office and hire you for a retirement and tax plan. There, you can take valuable actions:
This plan may be valuable to that client, but many clients need help carrying out the plan you give them.
Constantly changing tax laws and personal circumstances enter the picture. As soon as the plan is complete, it’s already on the way to becoming obsolete.
Tax management is a specific service we provide to our wealth management clients.
Just as many of your clients can’t execute their investment plans solo, they struggle to implement their tax plan independently. They need an advisor to help them with proactive tax management.
It’s like hiring a builder and maintenance team to execute the house’s blueprint. Tax planning is the architect, and tax management is the construction crew. Without the builder and maintenance team, the blueprint isn’t useful.
Implement financial advisor strategies to anticipate tax changes and differentiate yourself from other advisors and tax professionals. This allows you to charge higher planning fees and provide greater service to your clients.
As a holistic financial planner, you can work with tax professionals to look further into the future, adding value for your clients. Part of your fiduciary responsibility is also to integrate tax management into financial planning and investment management.
This is essential if you’re a Certified Financial Planner™. Review the wealth management services your firm can provide. Outline any tax strategies, and develop strong relationships with your clients.
“A competent financial planner can evaluate multiple years of prior 1040s and supporting documents to inform present tax-planning decisions and identify planning opportunities and areas of concern for the current and future periods.” —Certified Financial Planner Board of Standards
Do you want to be more confident while engaging in tax management with your prospects and clients? Integrate profitable business lines like taxes, financials, investments and insurance into one holistic plan. You provide them with more valuable financial advisor services.
You know how important it is to diversify your client portfolios across equities, bonds, annuities, alternative investments and more. But you should also differentiate your tax plans to mitigate future IRS pitfalls. Fortunately, you don’t need a tax background to begin — you’ll become more competent and confident.
Taxes aren’t a one-time thing. You’ll deliver ongoing advice and provide solutions to tax concerns.
“In my personal opinion — and I know I share this with some of my colleagues — it’s very hard to be a holistic advisor if you’re not talking about taxes.” —Dave Alison, CFP®, EA, BPC
Manage your clients’ taxes to add immeasurable value and worth to your job as a financial planner. Tax management offers your clients an array of benefits:
Tax management is one of the most significant profitable business lines you can have at your firm. Clients often view taxes as their most daunting and confusing expense, especially in terms of retirement. Our financial advisor training programs help you make sense of the chaos.
You don’t need a tax background to be successful. You can hire a CPA, enrolled agent, accountant or other tax expert for your in-house team. If you’re interested in starting a tax preparation business, our proven model guides you every step of the way!
The most successful advisors are always thinking about growth! They want to increase their offerings and expand the profitable business lines they offer. You can accomplish both simultaneously by building a tax practice within your financial advisor services business.
Tax preparation allows you to get in front of them once a year. This enables you to take two steps:
Even if they aren’t ready for your other financial planner services right now, you’ll be there when they are.
If you aren’t interested in starting your own tax preparation firm, no worries! You can still bring your clients incredible value by offering integrated tax management alongside your financial planning process and investment management.
We can share how to take this approach. We’ll demonstrate how to partner with other CPAs or tax professionals to bring your clients this valuable service.
Tax management sets you apart from the competition, allowing you to distinguish yourself:
It helps you go above and beyond for your clients by providing additional retirement and legacy planning.
Integrate taxes into your financial advisor services. It’s one of the fastest ways to get in front of new prospects and grow your business.
Our financial advisor training program covers each step:
And it helps you in many ways:
Are You Ready To Grow As a Financial Advisor?
We’ve perfected a three-pronged approach to integrating tax management into your business, getting in front of prospective clients fast:
The opportunity to bring a proven tax management process to clients differentiates you from other advisors and brings value to your clients’ financial situations. That’s true whether you build a tax practice from the ground up, partner with a tax professional or acquire a tax business.
You can partner with an existing tax firm to test it out. You’ll see whether adding taxes to your profitable business lines would work for your practice.
This allows you to borrow from the pro’s client list until you get more tax experience within your company. It also helps you convert more prospects into wealth management clients!
Attend The Tax Management Journey financial advisor training program if you’re interested in adding tax management to your service offerings.
The Tax Management Journey is a financial advisor training program. We designed it to provide you with the competency and confidence to stand out:
The Tax Management Journey delivers a seven-step process. It identifies and educates you on important factors:
Be more confident while engaging in tax management! You can provide more valuable advice by integrating clients’ tax, financial, investment and insurance into one overall plan.
Learn how to deliver proactive tax management to attract prospects and apply real-life comprehensive tax management solutions to existing clients.
You have many ways to gain new clients and grow your business:
And while this type of marketing certainly deserves your attention, it’s a slow process. What if you could acquire new clients almost instantly? One sure way to do so is to add profitable business lines like taxes into your existing wealth management services.
Start a tax practice to grow your current financial advisor services business. Adding a tax practice to your wealth management services generates additional revenue and adds new leads to your sales funnel.
Clients are uncertain about the future economic landscape and the best way to take advantage of it. Their uncertainty opens the door for you to seize the opportunity that taxes provide to your growing business.
Consider incorporating a tax practice if any of these apply to you:
Adding tax management to your financial advisor services portfolio can be daunting for even the most seasoned professionals. But it differentiates you as a distinctive, multi-solution financial advisor and showcases your firm’s capabilities to new potential client groups.
Book a call with us to learn more and discover how tax management supercharges your offerings!
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