Your first move
Tax season is here. If you are an investor, you may be looking for information on how taxes can impact your investments. We encourage our clients to have their CPA contact us so we can work together to develop strategies to keep their taxes down and keep more money in their pockets.
Tax loss strategies
When we are looking at how taxes can impact your investments, we often consider tax loss selling. It’s one thing to have good returns on your portfolio, it’s another to make sure you don’t loose those returns in taxes. There are other strategies that can be implemented but you need to start as soon as possible.
Where most investors fail
The sad reality is that a lot of investors will lament over whether to implement these strategies. They eventually run out of time and their CPA has to file their taxes. This kind of decision really needs to be discussed in the fourth quarter of that year. It is during the fourth quarter when when we are having conversations with our clients about any tax loss selling or other strategies that can be implemented.
What to do now
You might not be able to change how your taxes will impact your investments this year but you can start making plans for 2014. You can begin evaluating where you need to be now so the next time you will be able to keep more of your returns from your investments.
What your financial advisor should do
I am a big believer that financial advisors should not only be doing financial planning, but they also should be coordinating with the CPA of their clients as well as other professionals. It all works together and the sooner you understand that, the far better off you will be in your life to achieving your goals. Give me a call or email me if your advisor is not doing this for you. I would be delighted to talk with you.
Greg Powell, CIMA
Greg Powell is President and CEO of Fi Plan Partners, an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.