Covisum Blog

Hidden Value is a column in ThinkAdvisor where Joe Elsasser, CFP®, answers common questions with insights advisors and their clients may not have considered. This week he takes a closer look at the tax implications and the hidden tax-efficient planning opportunities created through interactions between various cash sources.

Tax Day is rapidly approaching, and there are a few ways that financial advisors can be really helpful during this stressful time of year. Many financial advisors know that taxes have a significant impact on their clients, however potential compliance issues often lead to reluctance to talk about taxes. Lumping anything tax-related into "tax advice," is a disservice to your clients. Advisors have a duty to understand, consider and explain the tax consequences of various strategies. To talk tax-efficient planning with clients you don’t have to know all of the complicated interactions between different tax provisions and different types of income. Here are a few ways to can help your clients make retirement strategy decisions in the most tax-efficient way this tax season.