It’s tax season, and many people are preparing their income taxes on their own though they should really be working with a tax professional to ensure they get the most benefit from their taxes and in turn build wealth. Tax planning is one of the most effective ways that a tax professional can help you increase your wealth. When you make smart financial decisions, it’s important to consider the impact that taxes will have on your overall wealth.
While it’s entirely possible to file a return without hiring an accountant or tax advisor, it can be far more effective to enlist the help of experts. That’s where a tax professional who specializes in wealth building can come in. A tax strategist is highly trained and experienced at filing taxes, maximizing deductions, and creating tax plans for all client types so you can build wealth effectively. This year, learn how to increase your deductions and lower your taxes by talking with an expert today.
As we’ve said before, a tax professional can help you build wealth through smart financial planning by taking advantage of all available tax deductions, planning for future investment opportunities, and by reducing the risk of making mistakes by filing taxes without professional guidance.
However, did you know that a tax professional can also help you plan for future wealth accumulation?
It’s not just the amount of taxes you pay that makes a difference, but how much income you retain after taxes. Taxes can play a big role in many of your financial decisions, including how much to save and invest, how much to spend, and how much to give away.
By providing insight into how your particular financial and personal situation is likely to change over time, an experienced tax advisor can help you begin to plan for the financial benefits and obligations that may arise in the future.
Let’s say, for example, that you are expecting to receive an inheritance from a relative. You’ll want to think about how you want to treat this income—as a lump sum or as regular income disbursements—and also how it will affect your taxes. A tax advisor can help you determine how best to structure your finances so that you are prepared when the money comes in.
Or perhaps your income is expected to go up substantially in the next few years. You might be able to ask your employer about requesting changes in your pay schedule or other benefits that could save you money on taxes now and in the future. A tax strategist can help you build wealth through smart financial planning.
If you are working with a CPA or enrolled agent, they can help you plan for future tax benefits related to investments or other sources of income. A good example is contributing to tax-deferred retirement plans like 401(k)s or IRAs; the earlier in life you start contributing, the more time your money has to grow before it becomes taxable. If your investment strategy is sound, and you build up assets, your return on a tax strategist will be well worth it.