Why Financial Advisors Beat CPAs for Wealth Management

Thousands lost annually. Remember, CPAs aren't typically financial advisors. They stick to taxes, not the broader wealth management. This is where a financial advisor shines. Unlike a CPA's yearly focus, advisors are forward-looking, integrating tax strategies into your overall retirement plan. They look at your income, investments, expenses, goals to create tax-efficient strategies. Now, for example, putting tax-inefficient investments in retirement accounts to minimize drag, or tax-loss harvesting to offset gains. Studies show optimal asset location alone can boost after-tax returns by up to point three percent, thirty basis points, as we like to say, per year, adding significant savings over a decade. Advisors also provide behavioral coaching to keep you from panic selling during market dips to pre-- help preserve your nest egg. Now, in retirement, taxes can eat twenty to thirty percent of your income. If not, a financial advisor will try to help with specifics like Roth conversions.