Integrating High Net Worth Tax Planning.
Wealth Management is a relationship business - nothing makes this more apparent than tax planning. From early education to end of life care, the fundamentals of tax planning for the high net worth are life and legacy built on a foundation of values.
It is very common for high net worth individuals and families to be uncomfortable but incredibly knowledgable regarding tax planning. Mainstream media throughout North America has led an onslaught of attacks against tax breaks for the wealthy and the masses followed blindly. Of course there will always be a select few who ‘cheat the system’ - however as a rule, high net worth individuals pay less tax (relative to income) simply because they are invested in learning and legacy. They work closely with their trusted advisors and wealth managers to create effective strategies throughout their professional life and into retirement that will provide not only for them, but their families and businesses in the future.
This is not an easy task. At the beginning of each year, new tax laws come into effect that can and will fundamentally change strategies already in place. The amount of knowledge, information and time required to keep up becomes a communication nightmare between the individual and all related parties - including accountants, lawyers wealth managers and more. The pressure of this situation can lead to a higher margin for error and missed opportunities to capitalize on strategic planning. So what is the answer? How is all of this managed?
Integrated Advisory blows open the doors for strategic tax planning with high net worth individuals and families. This approach to wealth management integrates all of your trusted advisors into an informal advisory board for your unique needs. It allows for open communication between trusted advisors who continually act in only the best interest of their clients immediate goals and future aspirations. During this process stronger professional relationships are built between all integrated trusted advisors, and stronger personal relationships are formed with clients to ensure they reach their goals. It is an opportunity to introduce a strong and dedicated team to all aspects of your financial health and well being by re-evaluation. After all, another year has gone by - and with it change.
The role of the high net worth individual in tax planning is to inform their integrated advisory team of changes that may have occurred throughout the year that impact tax strategy. Relationships change, families grow and life goes on to show us what we need to do in order to stay focused on our dreams and turn them into a reality - all of this and more needs to be communicated effectively to your integrated team.
The role of the integrated advisory team is to be educated and informed of various financial, legal and regulatory compliance issues that can affect you and your goals.
Effective tax planning is a complex piece of machinery with many moving parts that need to work together to be successful. Each trusted advisor brings a unique perspective, challenges and solutions that make up the totality of your strategic plan. When these two roles work together the outcome for the client and the advisory team is transparent communication and dedicated action. This saves time, money and the margin for error drops significantly.
As you can see, this is not an article giving you ‘3 Must Have Tips For High Net Worth Tax Planning’ - what this article has been written to do is give you the foundation you need to start a conversation - and look at an integrated approach to your financial future. There are no “Quick Tips’ or ‘Top 3’s’ when designing unique strategies based on your life and values, and anyone that would suggest otherwise is simply misinformed.
High net worth individuals don’t just leave money at the end of their life - they leave a legacy led by example. A legacy of values, dreams and a solid foundation for future generations. The path to success is communication, education and partnership. The Integrated Advisory approach truly is a ‘Less is More’ philosophy. Less confusion - more focus. Less talk - more collaborative action. Less time wasted - More time living.