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Why You Should Meet With Your Financial Advisor After Tax Season

Why You Should Meet With Your Financial Advisor After Tax Season

| April 05, 2018

We’re nearing the end of tax season *cue sigh of relief*. You may have already received your tax returns, or they may still be on their way. So, now what?

This is when you should schedule an appointment with your financial advisor. It may not seem like it, but your tax return is an essential part of the advising process. If your current financial advisor isn't using your tax return to help shape your portfolio, then you’re not getting the full scope. Showing your tax return to your financial advisor is only going to benefit you and your future planning opportunities. Here’s why.

Did you miss anything?

When working with your accountant, most of the time they will work closely with you to make sure you are getting all of the deductions you can take. Unfortunately, some deductions may get overlooked. To make sure you didn’t miss out on anything, your financial advisor can help dig deep into deductions you may not know you could get. Having a foundation of trust and honesty with your advisor will help them be able to help you.

Income and capital gains taxes

Your financial advisor can look for income in your portfolio as a way to determine what kind of investments should be in there. These investments are specific and useful to each client’s financial situation, and your financial advisor should only have your best interest in mind. These investments could be tax-free municipal bonds* if you’re in a higher tax bracket, or if you have any carry-forward losses reported on your return, you may be able to make additional trades without having to pay capital gains tax.

Essentially, keeping your financial advisor in the loop will only benefit you and your portfolio. Schedule an appointment with your advisor to help optimize your tax situation.

* Municipal securities may be subject to the alternative minimum tax, and state and local taxes may apply.