Updated: Jun 10
I have a little wealth secret for you.
Your CPA and Financial Planner are both failing you.
Don’t believe me? Let me ask you a couple of questions. Over the past year, have you met with your CPA at least a few times to plan for the future (not just discussing what you've already done?) Is the investment strategy that your financial planner is building out for you increasing in value while also paying you consistent cash flow? Even more importantly, what about the tax implications of the strategy?
The answer to those questions is more than likely “No”
Most financial planners can make a marginal gain on your Investments, but I can say with 100% certainty that your investments are not paying you consistent, double-digit cash flow returns. I can also say with certainty that your investments that are growing in value are not creating tax savings for you. They're creating a tax burden.
Your financial planner and your CPA should be working together and should have you in investments that are actually saving you in taxes. The reason that they're not doing that is because those Investments that generate tax savings and consistent, double-digit cash flow are not investments that your financial planner can get paid to manage. They don't share those investments with you because they don’t make a commission for selling them!
You should be taking advice from a Financial Planner and CPA who are planning for you into the future, not historically reporting and surprising you with the fact that you’ve paid too little or too much tax.
More than likely, your financial planner doesn't have his money in the investments that they're advising you on, he is following a system very similar to every other financial planner out there. He follows a script, sells you investments that he earns a commission on, and generally tries to “set and forget” your portfolio.
You should be taking advice from a Financial Planner and CPA who are planning for you into the future, not historically reporting and surprising you with the fact that you’ve paid too little or too much tax, or earned minimal returns with your investments.