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Like most advisors, we don't provide tax advice or legal advice. Yet, we strongly believe every advisor who works with taxable individuals should aspire to be an After-Tax Advisor. Understanding and communicating the likely tax consequences of various investment recommendations is an important component of the value you provide to clients.
After-Tax Advisors can earn their fees in spades by preparing clients for possible tax changes in 2025 and beyond. Not doing so could put your client relationships in jeopardy. In a sense, you could be putting yourself on the ballot.
Questions to the rescue
Is there a way to discuss the impact of potential changes without pretending to have a crystal ball? Ask questions to help reinforce your value as an After-Tax Advisor. Imagine the conversations that could arise from asking clients questions such as:
- "Are there any possible tax scenarios that might prompt you to change the way you invest?"
- "What concerns you the most as you listen to various potential changes in taxation in the current election cycle?"
- "Do you think your tax situation will change from 2024 to 2025?"
These questions don't require you to share a prediction or take a personal stance on politics because this conversation isn't about you—it's about your client.
Your role as an After-Tax Advisor is to get clients thinking and talking about how different tax scenarios might affect their financial goals. By encouraging them to consider several possibilities, not just their preferred outcome, you can ensure that continuing to do business with you is a vote they can cast with confidence.
Bottom line: Collaborate with clients to help them prepare their portfolios for any tax changes or implications that might result from Election Day 2024.
"Your role as an After-Tax Advisor is to get clients thinking and talking about how different tax scenarios might affect their financial goals."
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The Firm does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Tax laws are complex and subject to change. Investors should always consult their own legal or tax professional for information concerning their individual situation.
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