Advisory
4 Tax Strategies to Implement Now
When it comes to assisting your clients, there are important measures to take to ensure they are set up for success. Oftentimes when you discuss tax returns, you are talking about their finances from the previous year.
Jun. 13, 2022
By Jasen Stine and Robin Gervais.
When it comes to assisting your clients, there are important measures to take to ensure they are set up for success. Oftentimes when you discuss tax returns, you are talking about their finances from the previous year. It’s important to close that door and start fresh in the year to come, including how they can best invest, save, and contribute their money.
Below, we discuss 4 tax strategies to implement now, and the benefits of offering advisory services to your clients.
Contribute to an IRA
There are so many opportunities that come along with contributing to an IRA depending on how much your clients have spent, as well as if it’s deductible or not. No matter the circumstances, contributing to an IRA can increase and build the wealth of your clients.
When laying out the facts on whether they should contribute or not, ensure you are focusing on their unique case. Share pros and cons, forecasts, and the wealth they could build from it. It’s important to have in-depth discussions on where they see their financial future and how you can make sure they get there.
Know the benefits of an HSA
When discussing an HSA contribution, it’s essential to understand the plan your clients get from their employer. Is it high deductible? Low? Non-existent? Once you establish that, you can guide them through the smart options of either contributing inside or outside of work.
If they choose to move forward, they can use it to contribute extra to lower their tax bill on what they owe the IRS, and even lead to a tax refund. Remember, clients come to you for expert advice, once you map out their options – walk them through what each one will look like to help them choose their best course of action.
Contribute wisely
If your clients are in a lower income bracket and have the funds to contribute to an IRA, they can increase the availability of what they have for earned income credit. This can go a long way for clients who depend on you for important advice, and can help them financially in the long run.
Advise on the future
Most clients live in a world where they measure their finances by their yearly tax return. This is the time to change that. Start talking about the future and showcase plans on how you aim to get them there.
Bridge the gap between the yearly tax conversation, and start a quarterly check in where you can advise them on so much more than tax returns. Once you start implementing advisory services, you can start posing questions including “you are doing really well, let’s talk about retirement,” “how about we get more money in your 401K and max it out, especially if your company has matching capabilities” and so much more.
At the end of the day, it’s important to remember you are the expert and have the ability to assist your clients in growing their wealth. Look at what is available based on their tax situation – and make sure to look at it holistically for each client and provide a specified plan for them.
You can hear from Robin and Jasen, find more resources, and learn about tax strategies on a recent episode of Intuit’s AccounTrends, here.