Saturday, March 3, 2012

Personal Financial Planning

Here's a useful, though admittedly just a tiny bit self-serving, post on the AICPA's Insights blog.

A good investment advisor will consider the life goals of his or her clients and present alternatives directed at achieving those goals, even if the advisor's compensation is commissions on the sales made to the client. Sometimes though even an outstanding fee-only and commission based advisor will overlook an important tax factor affecting one or more of the available investment alternatives.

Much of financial planning by individuals or businesses revolves around the tax impact of various alternatives. Is is important to have those alternatives evaluated by a tax professional who does not have a vested interest in the final choice made by the investor. If you are already having your tax returns prepared by a licensed professional (CPA or Enrolled Agent), then discuss your investment plans with him or her BEFORE signing anything. If you don't have a CPA or EA and your thinking about investing what seems to YOU to be a lot of money, then find one. Most of us will provide a free half hour of general discussion of your tax situation.

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