The right financial planning software provides numerous benefits for financial advisors and their clients. Unfortunately, using the wrong tools can lead to missed opportunities. Tax laws, regulations, and stipulations are always changing, and effective software must have the ability to adjust and adapt, plan for unexpected life events, prepare for possible financial emergencies and utilize various tax strategies.
Tax Clarity®: Financial Planning Software for Dynamic Tax Strategies
What is Tax Clarity?
Tax laws can be confusing for retirees or those planning for retirement. Tax Clarity allows financial advisors to identify suboptimal tax situations, demonstrating to clients how to make the most effective and tax-friendly retirement decisions.
It also has the ability to interpret multiple scenarios and calculate the impact of current-year Roth conversions or capital gains. This helps predict how certain decisions will lead to different tax consequences, as well as the effective marginal tax rate.
Who is Tax Clarity for?
Tax Clarity is perfect for independent financial advisors and advisors working for small to medium-sized RIA firms. The data entry is quick and easy, and the output is unique, meaningful, and helps move clients to action. Running a Tax Map report for all of your retired clients annually adds bottom-line value for your clients and differentiates you from other financial advisors. Advisors flocked to Tax Clarity when the Tax Cuts and Jobs Act of 2018 passed, and more recently, advisors have been adding Tax Clarity to isolate when a Roth conversion may be of value for their clients.
Additionally, financial institutions can integrate Tax Clarity APIs into their systems. This unique calculation has broad appeal in the retirement income planning space.
When should financial advisors use Tax Clarity?
Tax Clarity is particularly useful for middle-income and upper-middle-income Americans. Tax Clarity can be used during annual review meetings with clients to help them understand their tax landscape for any given year to highlight the tax impact of different plan decisions by visually comparing different withdrawal strategies.
Great for self-employed clients, too, their income details can be entered to analyze potential withdrawal strategies such as sources of revenue and number of dependents. Using easy-to-understand visuals, this financial planning software calculates the impact of paying the employee and employer's share of Social Security and Medicare taxes. Its comprehensive Tax Maps feature identifies potential tax opportunities and possible issues, especially when certain income increases can push them into higher tax brackets.
A pass-through tax feature also showcases the impact of pass-through income deductions and its phase-out since the 2017 Tax Cuts and Jobs Act. A Saver’s Credit feature helps clients understand the credit’s impact on their retirement plans since the passage of the 2019 SECURE Act.
How can I get started with Tax Clarity?
Income InSight®: Financial Planning Software for Versatile Retirement Income Strategies
What is Income InSight and who is it for?
Income InSight was created for financial advisors serving affluent or mass-affluent clients who are about to retire or already in retirement. Income InSight helps advisors quickly show the value they can add, setting them apart from the competition. Income InSight demonstrates the value of comprehensive retirement income strategies and helps advisors analyze clients’ taxes, income needs, and Social Security benefits using planning modeling and assumptions. This financial planning software even stress tests clients’ retirement income strategies against a down market, Social Security benefit cuts, early death, unexpected medical emergencies and long-term care needs.
Why should advisors run an Income InSight analysis for clients?
An Income InSight analysis highlights the impact that different plan decisions can make on a client's finances. This software allows financial advisors to understand clients’ long-term retirement goals, including them as part of a broader retirement income planning process.
When should financial advisors use Income InSight?
Income InSight is ideal for mass-affluent or affluent individuals or married couples who are close to retiring or already in retirement. It helps clients understand their entire financial portfolio, as well as how different advisor recommendations could impact them.
How can I get started with Income InSight?
Start Building Better Retirement Plans for Clients With Income InSight and Tax Clarity
Can financial advisors use Income InSight and Tax Clarity together?
Yes! Both Income Insight and Tax Clarity can be used to create focused retirement plans for clients using visual aids. Financial advisors can seamlessly combine multi-year Tax Maps from Tax Clarity with analytics from Income InSight to obtain a deeper Tax Map analysis of any year. This powerful financial planning software combination can give clients a clear understanding of their current financial situation, as well as help them prepare for the future, whether they’re about to retire or already in retirement.
Income InSight and Tax Clarity help financial advisors maximize their clients’ savings and retirement planning goals. Check out this on-demand FinTech Tuesday Webinar to learn more. In addition, the Covisum customer experience team will be available for live chat every Tuesday at 2 p.m. CT to answer questions about the software.