Every year, about 140 million households file their federal tax returns. For many, the process involves digging through shoe boxes or manila folders full of receipts; gathering mortgage, retirement, and investment account statements; and relying on computer software to take advantage of every tax break the code permits.
Reviewing tax returns presents a great opportunity for adding value to the client-advisor relationship. Tax returns provide a tremendous amount of information about a client’s or a prospect’s financial situation, giving you the chance to identify planning opportunities and, to review what type of products they should consider when accumulating assets for their future.
Generally speaking, people fall into two categories: those who are dismayed by higher-than-anticipated tax liabilities and those who are pleasantly surprised by tax refunds. But whatever the situation, most wonder if they can do something different to reduce their tax burden now and in the future. Few clients or prospects will decline an offer to review their tax returns or evaluate their overall financial situation.
When establishing expectations for assessing a tax return, ask your client (or prospect) to mail or e-mail you a copy after he or she files. Then, schedule an annual review and use the tax return as a road map for exploring future strategies for his or her investment or financial plan. Through your careful attention, you’ll demonstrate your commitment to offering meaningful guidance and support. And, by and large, you will be the only advisor to invest this kind of time and interest in the client.
The Circle of Wealth® has 20+ presentations and calculators to talk to your clients and prospects about taxes and taxable accounts.
MoneyTrax, Inc. was founded in 1994 by Don Blanton and has gained national recognition for its unique financial planning approach, intuitive client presentation software, advanced training, and effective marketing tools. Since inception, MoneyTrax, Inc. has helped thousands of financial advisors nationally better serve their clients by providing the tools and training necessary to educate and increase their client’s financial Circle of Wealth®. The Circle of Wealth® system significantly expands the financial advice available to a family beyond the industry accepted approach used by most advisors today. Click here to learn more.