Your Wealth Manager’s Role in Tax Planning

While some people have the expertise (and courage!) to make their taxes a DIY project, most Canadians are too busy to deal with the complexities of minimizing tax liability when doing their taxes. While many of us are used to relying on an accountant to do our taxes for us, part of your financial strategy should also include tax planning with your wealth manager. As the person in charge of making investment choices, your wealth manager is usually much more familiar with your assets and your long-term goals than anyone else, and is a vital part of the tax planning process. Here are four situations where a wealth manager can help make your tax planning process as rewarding and effective as possible.

Plan for Tax Season All Year Round

For the most part, Canadians spend the most time thinking about taxes between January and March when it’s time to crunch the numbers with your accountant. As Bingham Jamison of Forbes explains, “Tax planning shouldn’t be a once-a-year event, one where getting a tax return completed represents the sole focus. Instead, an advisor should keep their eye on the ‘tax ball’ year-round, as there are many ways a savvy family wealth advisor can add tremendous value throughout the year.”

In other words, as you meet with your wealth manager throughout the year, the inevitability of filing your taxes should always play a role in how you and your wealth manager choose to invest. By the time tax season rolls around, the process of filing will be simpler because you’ve planned ahead for the most streamlined process possible.

Savvy Investment Management for Small Business Owners

Any entrepreneur knows that owning a business introduces a whole new set of tax complications that require extra diligence, and using a wealth manager to help manage your tax liability is the wisest course of action. Your manager can help you determine whether moving your income and investments to a holding company is a prudent decision, and also advise you on the best time of year to purchase mutual funds. While tax tips for small business owners abound, the only way to get advice tailored to your financial situation is to consult a wealth manager well before tax season.

Maximize Government Benefits for Retirees

Retirees stand to benefit immensely from the advice of a wealth manager, when it comes to tax planning. Retirees must carefully monitor the income they collect, so that they can collect their Old Age Security benefits. If you have extra income that’s putting your OAS in jeopardy, your wealth manager can find an investment solution that will allow you to receive and maximize this government benefit.

Every tax and financial situation is unique, and your wealth is a precious asset. Enlisting the advice of a trustworthy wealth manager will allow you to rest assured that your money is working is hard for you as it can.

Contact us at Rae Lipskie for any wealth management advice or concerns you might have!

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