Cetera / Avantax
Investment account access
Qount
Secure file and message portal for tax services
Xero
Accounting platform superior to Quickbooks
Cadence HCM
Payroll, timekeeping, benefits, and more
Elements
Financial Scoring
July Services
401(k), Solo 401(k)
Ramp
Accounting automation (bill pay plus expense & reimbursement management)
Are taxes a financial topic? Seriously - think about this for a minute. Are taxes a financial topic? You must be thinking: “Don’t ask stupid questions. Yes, of course taxes are most certainly a financial topic.” Ok, then riddle me this. Why is it that so many “financial advisors” avoid taxes with phrases like, “I’m no tax expert. Be sure to consult your accountant.”
If taxes are a financial topic and your financial advisor doesn’t know tax, he/she missed out on half their education.
Financial advisors should be asking for your tax return every year. If your advisor doesn’t you should question how they are making decisions in your best interest with only part of your financial picture in mind. Most decisions financial advisors make impact both today’s tax bill as well as tomorrows. In fact, it’s hard to think of a single financial decision that doesn’t have a tax Component. Consider these common concerns:
Often, when pressed for “tax efficiency”, a financial advisor will advise municipal bond based investments. Most advisors read the “label” on these sorts of investments, saw the words “tax advantaged” or “tax free”, got all excited, and proclaimed victory against Uncle Sam. This and a basic understanding of ROTH accounts are commonly an advisor's only solution to winning the tax game. Is this enough? Hardly!
Sometimes tax-free municipal bonds are a great fit. However, picking some generic mutual bond fund is only doing half the job. Those funds may produce tax free income on your federal tax return. What about the state? Municipal bonds are taxable to the state you live in if they are issued in another state. A generic fund may be a half solution providing little to no state benefit.
Furthermore, don’t make the mistake of overlooking the 0% long term capital gains rate. This rate is only available to taxpayers in lower brackets. Trading one tax-free investment for another tax-free investment won’t get you ahead.
Infusing a tax strategy into any financial strategy is not for the faint of heart. Taxes are complicated. Engineering future tax strategy takes more skill than simply a cursory knowledge of tax deductions. Why? Accountants are schooled to document history. You take your tax documents each spring and say “tell me what I owe for last year.” Many fantastic tax preparers struggle with the infinite what-if possibilities of designing a forward looking tax plan.
Some strategies to consider are:
A common way to approach the complications of handling money is to have separate advisors. One to talk about investments and another to talk about tax. This is done, well, because that's how it’s always been done. Some cite the benefits in a “multitude of counselors.” That approach has merit, but also a single point of failure. If those advisors don’t communicate regularly, the burden of coordination and overall strategy falls to YOU! If you’re capable, willing, and know that’s your role - great. If not, mistakes will be made and opportunities will be missed.
Most people don’t fully understand the level of coordination necessary between tax and financial strategies until it’s too late. Virtually every decision you make in your financial planning has a tax impact. Each time a financial strategy is considered it must be followed by, “what’s the tax impact of this choice?”
Imagine sitting with a financial advisor who is proposing a strategy. It sounds great and you’re about ready to sign-up, but remember the advisor has never seen your tax return or even asked about taxes. Wisely, you remember to ask, “What’s the tax impact of this strategy.” The response is, “I’m not a tax expert. I advise you to ask your accountant about that.” What are you to do now? Can you fully relay the details and timing of the strategy to your accountant? What about answering questions or evaluating feedback?
Reality is that coordination of multiple advisors is exhausting and nerve racking. Few are able to serve as the financial coordinator effectively. Some lack know-how, some lack time, others just don’t want to do the job. Regardless, it’s a critical job that can’t be ignored or overlooked.
To have a truly comprehensive financial plan, it must include a tax strategy integrated at the deepest levels. If your financial advisor doesn’t sit down and talk with your tax advisor regularly to make sure no opportunities are missed and no mistakes are made - mistakes will be made and opportunities will be missed. If your financial advisor and your tax advisor are the same people, coordination and creation of a plan for your financial success is more easily accomplished.
In just ten minutes you can see if it makes sense for us to work together. No pressure, no sales tactics. Tell us about what’s working and not working for you. If we can help, we’ll schedule another time to go deeper with you.
Schedule "Good Fit" CallKeep reading. Never stop learning.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Securities offered through Cetera Wealth Services, LLC, member FINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity.
Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.
This site is published for residents of the United States only. Financial Professionals of Cetera Wealth Services, LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Wealth Services, LLC site at https://cetera.com/cetera-wealth-services/disclosures
Cetera Wealth Services, LLC exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.
This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Investments & Insurance Products: Are not insured by the FDIC or any federal government agency- Are not deposits of or guaranteed by the bank or any bank affiliate- May lose Value
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Indexes discussed are unmanaged and you cannot directly invest into an index. Past performance is not a guarantee of future results.
Neither diversification nor asset allocation assure or guarantee better performance and cannot eliminate the risk of investment losses. Investments are subject to market risks including the potential loss of principal invested. The strategies mentioned may not be appropriate for all investors. Please consult your tax and or financial advisor(s) to determine a strategy that works best for you.
Distributions from traditional IRAs and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½,
may be subject to an additional 10% IRS tax penalty.
Converting from a traditional IRA to a Roth IRA is a taxable event.
A Roth IRA offers tax free withdrawals on taxable contributions.
To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution
must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law,
Roth IRA distributions may be subject to state taxes
Links provided from this web-site are strictly for informational purposes and are not an endorsement or recommendation of the site, company, content. Core Financial provides these links as a convenience to you, and has not tested any software or verified any information found at such sites. Risks are associated with the use of software and the information available on the Internet and you acknowledge and understand these risks before using any of these services.
Core Financial and Scott Patterson are affiliated with RamseyTrusted for tax services only.
www.sipc.org
www.finra.org
Check the background of your financial professional on FINRA's BrokerCheck
Check the background of this firm on FINRA's BrokerCheck
Important Information and Form CRS | Business Continuity Plan | Cetera Privacy Policy
Copyright © 2025 Core Financial Resources.