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Tax-Efficient Wealth Management

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How to Keep More of Your Money

It’s more important than ever to align your tax strategy with your wealth strategy. Working with a financial advisor on a solid financial plan is key for helping achieve your life goals, but it’s just as important to focus on how much money you keep after taxes. 

A recent study examined the long-term impact of taxes and other expenses on investment returns and concluded that while “investment selection and asset allocation are two of the most important factors, minimizing tax and other expenses” is also a key component to maximizing your returns.1

Maximize Tax-Efficiency by Integrating a Team of Experts

Partnering with a financial advisor means mapping out a journey that incorporates both short- and long-term goals. When it comes to buying a home (or a second home), planning for education funding, starting or selling a business, saving for retirement, your philanthropic aspirations, looking ahead at legacy planning, etc., every investor has a unique timeline for hitting the milestones that matter most. Along the way, their advisor can help them identify adjustments that can be made to ensure their timeline aligns with their wealth. Investors also work with tax professionals to ensure they’re taking advantage of any tax opportunities available. In essence, these are two closely interwoven relationships that often only intersect during tax season.

Rather than working independently with these professionals, there are many benefits to opening the lines of communication beyond document sharing at tax time. Some benefits of a collaborative advisor-CPA partnership include the following:

  • Personal Life Changes. Often in the midst of unexpected life changes (death, divorce, illness, a sudden change in financial situation, etc.), we’re less focused on finances and more focused on our emotional health. A partnership with an advisor and a tax professional means you’re supported through any situation and your financial plan is quickly adjusted accordingly.
  • Career Adjustments. We’ve worked with clients who have experienced sudden wealth from IPO activities or executed a succession plan to sell a business. In both instances, taxation can leave a sizeable mark on returns without proper planning.
  • Retirement Planning. Anyone on a fixed income, no matter their assets, understands the impact of taxes. Making adjustments along the way in advance of retirement is where an advisor and CPA can excel together to benefit the client.

Sharing information across parties offers investors the most comprehensive financial support from specialists in their field.

Evolving Your Approach to Annual Tax Planning

Many people associate April with tax season, but the reality is that there are many times throughout the year to consider your taxes and investments. Your advisor and your CPA working together means expanded expertise on the flow of money and how to best retain your assets against taxation.

At Creative Planning, our experienced tax advisors work alongside your wealth manager to help ensure your tax filing and tax planning strategies remain on track. Our teams have experience navigating a wide range of tax and financial challenges, always with the goal of helping you achieve your long-term goals. For help with your tax planning strategy, or with any other financial matter, please schedule a call.

If you’re ready to consider a more integrated approach to managing your wealth and experience the difference it makes in your short- and long-term financial planning, contact our team today

This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.


Find out how Creative Planning can help you maximize your wealth.

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