The best financial plan targets your ultimate goals in life and takes into consideration every aspect of your financial situation to develop a roadmap to get there. That’s holistic financial planning. Stepping back to see the big picture – your finances, debt, insurance, retirement, investments, estate planning and, of course, taxes.
Financial plans aren’t truly holistic if they don’t consider taxes because taxes have the potential to have a major impact on every financial decision you make.
Why It Matters
It’s not about how much you earn; it’s about how much you keep. No one should have to pay more taxes than is required by law. But if your wealth advisor is not a certified public accountant, or isn’t collaborating with your CPA, you could be paying more taxes than necessary.
Holistic Financial Planning is Key
- Tax laws are complex and regularly change. It’s often difficult for individuals to understand the tax implications of their financial decisions. However, a holistic financial advisor considers taxes all year round – not just during tax season – tracking constantly changing regulations with your best interests in mind. We can help you understand how current tax laws will impact your decisions and provide practical advice on how to minimize your tax liability.
- Your retirement depends on smart tax planning. When you reach your golden years, you don’t want to lose your hard-earned savings to unexpected taxes. With a holistic financial plan, you should understand your future tax rates, when you should take required minimum distributions from retirement accounts and how to maximize Social Security benefits.
- Control the future of your legacy. Your estate plan considers how your wealth will be transferred to beneficiaries, and taxes play a big role. A holistic financial advisor can offer guidance on which strategies are best for your situation, which could include gifts, wills or trusts, so you can minimize the tax liability for your estate.
- Understand how your investments are impacted by taxes. Decisions to invest in assets like real estate, stocks or bonds have tax implications that can significantly impact returns. With a holistic financial plan, you can avoid or plan for capital gains taxes, and receive guidance on strategies like tax-loss harvesting or tax-smart ways to donate stock to charity.
Taxes are at the center of holistic financial planning because taxes touch every part of your financial life. If your financial advisor isn’t offering advice based on tax liabilities, you are likely missing opportunities to grow and preserve your wealth.
At Wealthspring Financial Partners, we take a team approach to wealth management. Our wealth advisors and CPAs work closely together to bridge the gap between the advice you would typically receive from separate tax and financial professionals, giving you a more comprehensive approach to managing your finances.
Contact us today to learn how we can help you or your business reach your financial goals.