Do You Feel 'At Sea' When it Comes to Tax Planning?

byRob Wick

6 Trillion Dollars! I think I saw a joke about this once in an Austin Powers movie. Unfortunately, this is no joke, $6 trillion is the federal government's budget laid out for 2022.

For a true financial professional, the ability to admit, “I don’t know, what I don’t know” takes a bit of soul searching. If there is one area where most financial professionals can admit this, it is surrounding tax laws/codes. Have you ever tried reading Tax Facts? It reads like a stereo instruction manual. So how is it that the ultra-affluent seem to leverage tax laws/codes in their favor? First, they understand the value of money. Second, they surround themselves with people in their circle who are tax law/code experts.

The problem surrounding tax-efficient planning is simply a lack of knowledge. At the end of the day, financial professionals do not provide tax advice (unless you are a CPA and a planner). But understanding tax law/codes is what separates you from your competition and is the meaningful difference on attracting a higher net worth client (remember they surround themselves with people in their circle who are more knowledgeable than themselves). Explaining how a federal budget correlates to an individual is an uphill battle. Let's take a look in simple terms:

There is a simple solution to the above budgets which should be common sense to most: do not spend more than you make. Unfortunately, this simple thought is lost in DC. You, as a financial professional, are tasked with creating individualized tax- efficient plans for your clients whether that be estate, income, or business planning. As if you do not have enough on your plate as it is, perhaps you take a page out of the ultra-affluent playbook, surround yourself with those who know more about tax planning.

The call to action for you as an advisor: surround yourself with Peak Pro Financial. Since 2003, we have provided superior support, product education and fine-tuned unique sales concepts. We offer proven sales strategies, innovative marketing tactics and training to enhance tax-efficient planning. Give us a call and find out why Peak Pro Financial is the essential partner to the nation’s leading advisors, arming them with highly relevant tax-smart strategies.

*'At sea' is a cowboy phrase for being lost or confused.