In 2022, financial advisors are taking on more tasks, from frequent client meetings and understanding market fluctuations to staying on top of potential legislation changes. They’re also largely responsible for bringing in new prospects and growing their practice. Financial advisors must continually learn and adapt without sacrificing their ability to provide outstanding service to their clients.

Covisum’s Tax Clarity® offers many advantages to financial advisors when creating comprehensive retirement income plans for clients. With the ability to carry out complex calculations and factor in relevant tax laws, income thresholds, different scenarios, and more, Tax Clarity can showcase the value of your financial services.

What Is Tax Clarity?

Created explicitly for advisors who serve mass-affluent and affluent American retirees and those preparing for retirement, Tax Clarity is a comprehensive financial strategy software. Many advisors use it alongside other programs (such as eMoney or Money Guide Pro). Still, it adds value all on its own or especially when stacked with the rest of Covisum’s retirement income planning suite, including Income InSight®, Social Security Timing®, and SmartRiskTM.

Predict fiscal consequences with powerful software.

Tax Clarity can help you determine the impact of Roth conversions or the harvesting of capital gains, exploring the tax consequences of those decisions.

Use Tax Clarity to help you identify and avoid tax torpedoes, a situation that requires individuals or joint filers to pay taxes that are much higher than initially anticipated. The software solution can also uncover opportunities that add significant value to a retirement income strategy.

Strategically plan with customized Tax Maps.

By examining your clients’ current year tax data, Tax Clarity’s Tax Map feature illustrates where the next dollar harvested from income would have a minimal effective marginal rate. It can also analyze and compare different withdrawal strategies, communicating the results with your clients in a way that’s easy to understand.

What does this look like in practice? An advisor can prepare and save a client's base case Tax Map, then run a comparison Tax Map showcasing their suggested income strategy. Use the on-screen comparison feature to show the client how a specific income strategy can add money to their retirement income plan. Advisors can easily demonstrate their value with impactful, automatically generated charts and graphics.

Help self-employed clients see the whole picture.

Tax Clarity’s self-employment tax feature even allows advisors to calculate the impact for self-employed clients who pay both the employee and employer's share of Social Security and Medicare taxes. A pass-through tax feature also showcases the impact of pass-through income deductions and its phase-out under the 2017 Tax Cuts and Jobs Act.

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Tax Clarity Works Dynamically to Address Client Needs

Covisum’s full stack of software — Tax Clarity, Income InSight, Social Security Timing, and SmartRisk — works together to help advisors provide better retirement income strategies for their clients. After simply entering your client's information, the software does the hard work for you by handling numerous complex calculations.

This software suite includes all the tools advisors need to help clients through every step of retirement income planning, including:

  • Identifying the optimal time to claim Social Security
  • Navigating taxes in retirement
  • Understanding portfolio risk
  • Determining which account to use and when

Covisum understands that a financial advisor’s job is difficult. Our advisor-led team possesses a deep understanding of the importance of creating software solutions that quickly and measurably demonstrate value to prospects and clients. Our tech stack provides a plethora of benefits to financial advisors and helps you avoid:

  • Wasting time
  • Leaving money on the table for your clients and your business
  • Losing out on potential new clients

Let Tax Clarity help your practice grow. Sign up for a free trial — no commitment required.

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