Comprehensive Wealth Management: Do You Need It?

We recently had a new client come in for an interview. They were interviewing our firm, as they were looking for help when it came to their portfolio. As our conversation progressed in that meeting, I noticed that investment management is not what they really needed. What they actually needed was comprehensive wealth management. If you’re wondering what that entails, let me explain a little more.

Did you know that there is a 0% tax rate? Well, that is precisely what this individual quickly found out during our meeting. They had just sold a beautiful piece of real estate that was an investment property. They possessed the property for a period of time and had some nice gains in it. When we looked at all the numbers between the salary of their day job, along with the sale of this property, their gross income looked like it would be around $100,000 for that year.

We began asking questions about their income, knowing this one little caveat: if we could get their income below $74,900 that year; then they would not have to pay any capital gains taxes on the sale of the investment real estate. Instantly my team sprung into action. We weren’t looking to just help with investments now. Our goal was to show them what comprehensive wealth management could do for them.

We ended up getting their tax advisor involved and began working as a team. Now, you’ve heard me say many times you need a good tax attorney, a good CPA, and a CERTIFIED FINANCIAL PLANNER™.  After about two or three weeks we came up with a strategy reducing their income below $74,900.

So what this client came to us for was investment management, however, what they received was a substantial tax reduction. Why? Well, planners look at the bigger picture. They know systems and strategies to help. A CFP® is there to get you from where you are today to where they want to be in the future.

See, for this client the idea was to sell a piece of real estate, take the proceeds and store it away in an account and let it grow between now and retirement. Not only did we do just that, but we also helped them qualify for 0% tax rate.

Can it get any better than that? I don’t think so.

Sure we ended up taking care of some investment management, which is what they initially came to us for. We also dealt with some legal issues, some insurance needs, and all these other things. Nevertheless, instantly this family saw that working with a CERTIFIED FINANCIAL PLANNER™ goes well beyond helping accomplish their investment goals. With comprehensive wealth management, we got to all those, but we also reduced their tax rate.

So let me ask, are you a real estate investor? Perhaps you are a business owner? Have you just sold an asset? Do you need help with stocks and bonds? Look if you are generating capital gains close or near that threshold of $74,900, meet with your CFP^® now. Look if you’re even $20,000, $30,000 or $40,000 above that, now is the time for you to talk to your financial planner!  We are already into late fall of 2017, so is the time you want to start working on your tax strategies. Don’t let a 0% tax rate escape you! Meet with your planner today!