YOUR CPA, YOUR ADVISOR, AND YOUR FINANCIAL PLAN: WHEN TWO HEADS ARE BETTER THAN ONE

When it comes to your long-term financial plan, it’s essential for the advice you receive to account for your overall needs and financial picture. This is especially beneficial when understanding and planning for the impact tax-related factors might have on your financial success.

Because taxes can play a key role in your financial outlook, we always encourage an open line of communication between your financial advisor and your tax professional. While it may seem like these two individuals can work separately to support your needs, there are several scenarios in which a collaborative approach can be more advantageous to you.

COMBINING EXPERT ADVICE

For example, suppose you’ve been looking at the 2018 changes to the tax code and are concerned about how they will affect your tax liability in 2019. Your first thought is to speak with your CPA whom you have worked with for years, but before doing so, you realize that this may influence the amount you can contribute to your retirement accounts in the following year. To understand how this guidance will impact your nest egg, it’s important for your tax professional and financial advisor to collaboratively provide you with a clear picture of how your tax liability can be minimized while keeping your retirement plan on track.

It’s equally important for your CPA and advisor to provide cohesive advice once you are living in retirement. This is especially true when it comes to your Required Minimum Distributions (RMDs). Your CPA knows that these distributions need to start at age 72 and can work with your advisor to help you take these distributions strategically in light of your overall plan. This is especially important if you have multiple IRAs or are converting some assets to a Roth IRA. By working together, these two professionals can help ensure your distributions are optimized for your specific needs.

These are just a few examples of how your CPA’s expertise on tax law and your financial advisor’s expertise regarding asset allocation, financial planning strategies, and managing the emotional side of investing can be combined to set you up for financial success. Other areas include:

• Real estate
• Estate planning
• Maximizing deductions
• Account types
• Charitable giving

Collaboration within each of these topics benefits everyone involved: your CPA gains insight into your long-term financial plan, your advisor gains insight into your tax situation, and you receive the most comprehensive recommendations considering your financial situation.

RAA TAX SERVICES

To enhance our ability to serve our clients in every area of their financial lives, RAA is proud to offer tax planning, guidance, and return preparation services. Our in-house Tax Services Manager, Kristi Cherry, is a CPA who brings 20 years of accounting experience to help with clients’ tax planning needs.

As a part of the RAA team, Kristi can work directly with RAA’s advisors to answer any tax-related questions you may have or incorporate any of the topics listed above into your financial plan, as well as prepare your annual tax return. Kristi and her team can also guide you through federal and state tax issues, and help you plan for future events such as higher salaries, retirement, and more.

By working in partnership to serve you, Kristi and our advisors can account for various tax implications that could affect your financial plan and provide comprehensive financial guidance tailored to your unique needs.

Give us a call at (800) 321-9123 or fill out the form below if you would like to learn more about how our tax services, in partnership with a comprehensive plan, could help you achieve a secure financial future.

Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by RAA following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, RAA accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security.