What Do You Need?
When you set out to accomplish your financial goals, it’s helpful to have support from a team of experts who work together for your benefit. A crucial medical procedure may involve a cardiologist, an anesthesiologist, and nurses who must communicate clearly for a successful operation. The same is true in financial and tax planning. When you’re preparing for important financial milestones, you’ll need an expert team — a Certified Public Accountant (CPA), an estate planner, and a Certified Financial Planner (CFP). Once these trained professionals understand your situation, they can create a comprehensive strategy to meet your needs.
When you understand the role of each financial advisor you’ll know the right questions to ask and how to delegate tasks. Just as a team huddles before football plays, so should a financial team coordinate with each other to successfully reach the financial milestones you want to achieve. A CFP investment advisor can help determine a strategy and establish an overall plan for your investment portfolio. A CPA can track your current IRS requirements and help with tax strategy and planning. An estate attorney offers advice on the role of wills and trusts in your portfolio and explains in general how to transfer assets to future generations. The right professionals will create a strong bond between you and the rest of the team, which ultimately means better communication and fewer mistakes. Due to the time-sensitive nature of certain financial issues, a lack of communication could result in you paying higher taxes or losing wealth in the investment markets.
Separate advisors are always preferable to a one-stop-shop financial firm. When a single advisor or firm offers tax planning, investment advice, and/or estate planning, a conflict of interest can result. Sometimes an investment advisor will suggest the sale of a particular stock that happens to lead to a more complicated tax return that year. In this case, advice from the investment side leads to more work on the CPA side. This means if one person or firm is doing all the work,it’s tempting to suggest investment strategies that lead to more complicated tax planning and vice versa. The opposite of this would be buying items in a portfolio that have complicated tax treatment and make the return more time-intensive for the CPA to complete. Having a tight-knit but ultimately separate team in place avoids conflicts of interest altogether.
To properly prepare for the most important financial milestones in your life, select an expert financial team to help increase the odds of success. A coordinated team effort among advisors will not only safeguard against improper financial management, it could uncover opportunities you might miss. Demand strong communication among your advisors as a foundation for a holistic approach to financial planning. Then you’re more likely to find clarity, peace of mind, and the ability to preserve, grow and transfer your net worth to future generations.
Christopher R. Manske, CFP® is owner and operator of Manske Wealth Management. His firm offers investment advice that focuses on monthly client communication. The firm’s dedication to keeping clients and other advisors informed differentiates the team from the rest of Wall Street. In an industry in which clients feel a lack of regular contact from their advisory team, Manske Wealth Management lives up to its slogan: “Every client, every month.” Learn more at www.manskewealth.com.