The role of a financial advisor is to provide financial services and guidance for clients’ decisions concerning money matters, personal finances, and investments. But a missing key element that financial advisors don’t provide is tax planning, according to a recent article by Forbes.
Tax planning is extremely important for any individual’s situation as it works to minimize the amount you pay in taxes.
As defined by Investopedia, “Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient.”
If it’s such an integral aspect of financial planning, why do Financial Advisors not offer it as a service? Well, there are a few reasons, such as their lack of the necessary tools to offer tax planning services or their firm does not allow tax guidance to be provided to clients.
Because of this, financial advisors miss out on the advantages of being able to provide tax planning, but their clients take the hardest hit. Finding legal ways to lessen a client’s tax burden can substantially strengthen their portfolio performance to keep more of what they make, especially if they own a business or are a high-wealth individual. With professional help, proper tax planning can lessen the tax burden and increase the amount of money a person will have for their next business purchase or in retirement.
Part of a Financial Advisor’s job is to assist clients with planning and saving for retirement, but a vital aspect of preparing for retirement is tax planning.
Most CPA’s focus their practice on Tax Preparation, not Tax Planning. They offer Tax Planning, but this isn’t their primary source of services. Tax Planning is what clients want.
TWI was created so the client can continue working with their Tax Preparer, and in conjunction with their Financial Advisor, have a dedicated Tax Planner, 12 months/year, at no additional cost to the client.
Heath Walters provides just that, and now people are beginning to recognize how much his offerings are needed.
Heath Walters is a strategic tax planning specialist who helps financial planning firms build the practice they love by winning more high-value clients through strategic tax planning. Founder of The Walters Institute, his company provides on-demand tax planning, education, and support for RIAs and their High Net Worth prospects and clients.
He and his team of CPAs work hand in hand with financial advisors to integrate tax planning and investment management into an incredible offering for their existing and prospective clients. With over 10 years of experience as a CPA and Certified Tax Coach, Heath’s proven process for client acquisition has led to many advisors doubling, tripling, and even quadrupling their revenue in as little as 24 months.
Back in 2014, Walters bought a few CPA firms with a financial advisor and combined wealth management and tax planning in-house. “We realized the power of interconnecting the two,” Walters shares, but he ran into a few hurdles. 1- It is extremely difficult for financial advisors to find a tax planner. 2- How can it be done in-house to make it scalable? 3- How can he align the economics?
After many years of fine-tuning the details, The Walters Institute was born. And what is becoming a more widespread issue is the lack of financial advisors and CPAs working together to benefit the client.
It is reported that 80% of investors want their financial advisors to assist them in minimizing their taxes, but many either don’t know how or are unable to provide that service.
That’s where Walters comes in.
“By having a relationship with a financial advisor, and having them build a relationship with their clients, and because they have it with us, in turn, we can solve both problems,” Walters explains.
Combining his knowledge as a CPA and a financial advisor creates the best on-demand service for clients. But what makes Walter’s company unique is his ability to collaborate. The key to a great collaboration is prioritizing the relationship between all parties involved, something Walters places at the forefront of his company.
“We understand how you operate, you understand how we operate so we can collaborate and integrate as a team much more cohesively with the clients,” Walters discusses.
Working with financial advisors, his company breaks down the process of strategic tax planning with a step-by-step approach to establish a firm as a credible resource for high-end clients. With his integrated approach, a financial advisor will have “elevated his skill set in a matter of a couple of weeks,” Walters says.
If you’re an established Financial Advisor looking to offer a complete service to your clients, Heath Walters can help. Whether through the in-person Financial Innovation Summit in January or specialized webinars, Walter’s expertise will help you grow your business to keep a competitive edge against your competition.
Book a consultation call today to get started.