Dan Larson is the Vice President here at Wealthquest. He is an accountant. Prior to Wealthquest, he was a tax manager. He is the perfect person to talk about taxes, as we dive into five major tax opportunities that are often missed.
We talk about data gathering and ways to get a jump start on the following year's taxes. He also shares a technique to avoid tax surprises and the dread associated with tax time. Dan talks about digital and paper hybrid record keeping, coordinating information with different advisors, and more.
[03:56] A healthy way to think about taxes is to start preparing for the next year after you file.
[04:21] Data gathering is a big headache. It can be made a lot easier if you have an organized system throughout the year.
[05:21] A mid-year check-in can also be a great way to run a tax projection. Avoiding surprises is very helpful.
[06:28] Statements are hybrid with digital and paper. It's important to have those records and keep copies for seven years.
[09:00] Dan walks us through issues that can happen when working with an investment manager and a tax professional. At Wealthquest, we coordinate everything in house, so the client doesn't have to worry about communication between professionals.
[13:05] The model of having all of the separate professionals under one roof and coordinating together is becoming more common.
[14:16] Dan talks about how having wealth management and tax advice in-house is an advantage.
[17:17] Coordinating financial planning and taxes is an advantage when it comes to building out financial expectations for life. Having a financial plan puts things in place well ahead of tax time.
[20:08] A big part of estate planning is avoiding estate tax. Having coordinated advisors can help with legacy goals, charitable giving, and gifts to children.
[22:32] Tax preparation is when you do your yearly taxes. Preparation is when you plan for your taxes in advance. Technical expertise is required to navigate the tax codes in both areas.
[26:14] Dan shares his thoughts on TurboTax.
[28:39] Missed tax planning opportunities include not planning at all and deferring taxes as long as possible.
[30:37] Proactively managing gains and losses can also get missed.
[31:44] Dan shares an example of efficient tax planning and portfolio rebalancing from a client perspective.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Resources & Links Related to this Episode
- Wealthquest Get Started
- Living a Rich Life: The No-Regrets Guide to Building and Spending Wealth
- Dan Larson