Why Your CPA and Financial Advisor Should Be the Same Professional

financial advisor

Your CPA does your taxes. Your financial planner handles your investments. But, what if your CPA could also manage your wealth? If the person who understands your tax situation can also be the person advising you how and where to invest for the best rate of return (based on your tax situation AND your financial goals), it can save you a lot time and a lot of money.


The Disney Cruise

Let’s look at an example. Don is a dentist who wants to take his grandkids on a Disney cruise. He has a traditional IRA, a Roth IRA, and another post-tax investment account. That Disney cruise could cost him $7K or $17K depending on which account he takes the money from.  

A traditional IRA is tax deductible, and a Roth IRA isn’t tax deductible but grows tax free and is nontaxable upon withdrawal during retirement. If Don’s CPA is also his wealth manager, he will get the right advice from a single expert and quite possibly avoid losing a lot of money just by taking the funds out of the right investment account.


Should I do a Roth conversion?

When CPAs are working through tax planning engagements with clients, it’s not uncommon to discuss Roth conversions during retirement. Most financial advisors would suggest a conversation with your CPA to make sure tax implications are considered. But, when your financial advisor IS your CPA, it is one less dot you have to connect and conversation and/or meeting you need to have where important details can get lost in translation.


Multi- Year Plans

Planning for the future isn’t about just planning for next year. A good financial plan will span multiple years. But, in order for you to put a long term, multi-year plan in place, you have to work with someone who also knows your tax rate and can project forward for you based on tax law changes. Much time is saved, and financial goals are achieved when you are able to have one meeting with one professional who has managed both your tax and your wealth strategy.


The expertise you need in one professional

Leveraging a partner who is both a CPA and wealth manager will allow you to build your money up in the right investment vehicles and take it out at the best times and in the best ways to minimize your tax liability. Finding both tax and wealth expertise in a CPA can help you achieve your financial goals without managing communication between multiple professionals that can cost you precious time and money.  


Most people don’t have a clear path to achieve their financial goals. We educate you, stay in front of you, and we make it happen. Call us today at (636) 532-9004 to schedule your wealth strategy consultation.