The Power of Tax-Focused Wealth Management

June 6, 2023

Man sitting at desk

By Christopher Sassone, CFP®, CLTC®

Many people only focus on taxes for a few months in the spring, and then they become an afterthought for the rest of the year. But the best wealth managers evaluate your tax liabilities all year long in every piece of advice they provide. That’s why it’s so beneficial to have CPAs and wealth advisors who collaborate to develop a comprehensive financial strategy to meet your specific needs.

When financial advisors and CPAs work together, your CPA can help you understand the tax implications of your financial decisions, while your advisor can provide you with a well-rounded financial strategy that considers your tax obligations.

Investing in real estate, bonds or stock can have significant tax implications that impact the return on your investment. The same goes for selling assets. If you sell stock, real estate or other assets, capital gains taxes can take a bite out of your profit if you aren’t prepared. A collaborative CPA and wealth management team can advise you on the best strategy to maximize returns and reduce tax liabilities. 

Similarly, by working with a CPA, a tax-focused wealth advisor can help ensure you are taking advantage of the tax benefits that are available to you. A CPA can identify tax-advantaged investments and deductions, such as traditional and Roth IRAs and health savings accounts. Then your financial advisor can incorporate these into your financial plan to maximize after-tax returns.

A CPA and wealth manager can also work together to make sure your finances are aligned with your broader goals. For example, if you are planning for retirement and want to make the most of your retirement savings, your financial team can develop a strategy to make sure your tax obligations and tax benefits are aligned to help avoid any pitfalls.

Arguably, the most important benefit of working with a CPA and financial advisor team is the peace of mind you get from knowing you have a comprehensive financial plan and trusted expertise in your corner as you prepare for your family’s future. Taxes are complex, and the laws change all the time. Likewise, investments are complicated and require a special skillset to navigate. With a team approach, you get the best of both worlds so you can have confidence that you’re making the most informed decisions.

At Davie Kaplan, our certified public accountants work closely with our wealth advisors to evaluate every possible opportunity to reach your financial goals. Call us today to learn how we can help you make the most of your tax benefits and reduce your tax burden.

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