A&I Wealth Management > Blog > The 4 Tax Benefits of Financial Advice

Read this Periscope to learn more about the value of hiring a financial planner. Also, check the website for a video to learn more about the nuanced ways to measure and attempt to predict inflation, and about the tools that the Federal Reserve uses to reduce inflation!

Financial planning is more than investment management

As we said last week, you’ll want your investments to align with achieving your financial plans.

Similarly, changing your financial plans based off your investments would be incredibly stressful. Today, the market’s up—let’s eat at the expensive restaurant! This month, the market is down—cancel our flight to Paris!

Yet, we are told repeatedly that we should change our investment strategies based on recent market movements. Or worse, we are told by some prognosticator what is about to happen and what we should do about it.

No one can deliver an accurate short-term forecast for equity markets. No one can deliver an accurate forecast for the economy or interest rates over any time-frame with any consistency. As they say in the military, everything changes when the bullets start firing.

But your plans don’t have to change. With real-life, achievable and secure financial plan, you can set and hit your goals over your lifetime. Let’s quantify the value of financial planning in several different categories.

Income tax benefits from financial planning advice

Some benefits from a real-life financial plan include tax benefits. Here is a list of some of the tax planning strategies and estimated benefits in dollars:

  • $1–10,000s: claiming tax deductions, credits, and tax-free investment opportunities.
  • $10–100,000s: choosing the right Roth IRAs, 529 plans, and more.
  • $10–100,000s: tax-deferral and retirement contributions.
  • 0–30+% of your total net worth: tax-bracket arbitrage, tax sensitive liquidations, and more.

In summary: the tax planning benefits of financial planning advice could be 30% or more of your total net worth!

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About the author

Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.