Financial Advisors should be cognizant of tax consequences

Financial Advisors should be aware of tax consequences

At Vestpointe, we are unique.  We are CPA’s as well as CFP’s and registered investment advisors.  Our knowledge in tax planning allows us to be a diligent financial partner to our clients. We have established that conscientious financial advisors take into account the tax implications of every investment before it is purchased and most especially when sold in a client’s account.  Certain investments should be in qualified accounts and certain holdings should be in taxable accounts to gain the best tax efficiencies.  Financial advisors should analyze which holdings will provide tax loss harvesting opportunities and be cognizant that when a client needs cash, they use the most tax efficient method.  This is to avoid a large tax bill based on sales of holdings with large gains.   Many times, in our tax practice when preparing clients’ tax returns who may use another financial advisor, we notice that they have substantial realized gains.  This is often due to their advisor not being conscientious in regards to being tax efficient when making a sale. The client ends up paying more taxes as a result.

In addition, at Vestpointe we utilize tax planning as part of our financial plan for clients.  We ask every client for their tax return so that we can help ascertain if they are being effective with their deduction’s and assist them with lowering their tax burden.  We look at their long-term picture to make sure a client is using the right investment vehicles to lower their overall lifetime taxes.  We have helped many high net worth and small business owners to effectively save more through the use of profit sharing 401(k)s and Cash Balance plans.

We are always available for a complimentary initial meeting.  Please email or call us at This email address is being protected from spambots. You need JavaScript enabled to view it. or (602)212-1040.