Premier Tax CFO

The Good, The Bad, and The Ugly of Using Your Tax Preparer as Your Wealth Manager

Your tax preparer is one of your most important advisors.  You see them annually to manage the largest bill you will have over your lifetime:  your taxes.

The person that prepares your taxes knows your deepest secrets, things even your family may not know about you.  When you meet with them, they know how to ask you clear questions, can be trusted to keep your answers confidential, and will use that information to YOUR advantage while staying within the bounds of the law.  You trust your tax preparer.  You make sure to call them whenever you are going to make a financial decision because you know that they see how all the moving parts of your financial world fit together.

This brings up the obvious consideration that your tax preparer might be your best choice as a wealth manager.  They already know you.  They have a broad understanding of how your tax and financial worlds integrate.  They give you advice based on what’s best for you.  They try not to sell you something you don’t need.  And, you already trust them.  All of this is good, right?  Of course it is.

Let’s look deeper into how this tax management relationship pertains to your wealth management needs.

4 Things Do-It-Yourself Investors Want

On a recent foray into the world of financial bloggers, I read a thread started by Jim, entitled “Your Take:  Do You Trust Financial Advisers?”  I was interested to read what savvy, do-it-yourself (DIY) investors had to say on the topic.  This post by Staci started me thinking:

“I read A LOT of books on finances, investing and follow a lot of financial blogs.  Generally, I don’t find that financial planners add much value beyond what I already know.  I’m always searching for that one planner that will give me some super compelling financial advice unlike anything I’ve ever heard or read to help us grow our money and make wise investments, but I always feel disappointed when we meet with someone.”

When I read this, I immediately thought of Jeremy (name has been changed.)  I met Jeremy when he interviewed me for one of his articles.  He shared Staci’s opinion.  As a financial reporter, he had an education and some experience in the financial world.  On top of that, he was very, very bright and technically oriented enough to consider the finest of details.  Like Staci, he was looking for that financial advisor who could go beyond the generic and provide ‘something more.’

At the end of my interview, I invited Jeremy to experience our process of working with clients.  He took full advantage of our technology resources, pressing my service team to their fullest in implementing our programs for collecting all his information in one place.  But that’s not when Jeremy thanked me, Jeremy was used to working with advanced technology.  He did, however, LOVE the depth and breadth of our resource technology because it really did bring all of his information together in one place – something he had been looking for.

Mythbusters: 4 Truths NO ONE is Telling the DIY Investor (Part 2)

In Part 1, I addressed the most common Do-It-Yourself (DIY) myth that I have encountered over my 30 years in the tax and financial industry:  If I do it all myself, I will save (A TON OF) money!

I also stated that some arenas should NOT be DIY.  When DIY beliefs are taken into the realm of managing your financial world, planning for retirement, or setting up your life’s legacy, they become myths that can cause irreparable damage to your financial world.  These myths are usually predicated on incorrect assumptions.

In this article, I will review the other three DIY myths that no one is talking about.

MYTH:  Any SMART person can make money in the market.
ASSUMPTION:   Information is the same as judgment.

Mythbusters: 4 Truths NO ONE is Telling the DIY Investor (Part 1)

From the television, to radio and print media, we are sold the Do-It-Yourself (DIY) values of saving money, controlling the outcome, and being self-reliant.  These are great American values that invite us to explore our capabilities in the typical DIY arenas of home improvements, sewing, yard care, auto repairs, and technology – often with great results!  Moreover, if the results are not so great, we can usually find a reliable expert to fix it for us. 

However, some arenas should NOT be DIY.  When DIY beliefs are taken into the realm of managing your financial world, planning for retirement, or setting up your life’s legacy, they become myths that can cause irreparable damage to your financial world.  These myths are usually predicated on incorrect assumptions.

In this, the first part of a two-part series, I will tackle the most common DIY myth that I have dealt with in my 30-years in the tax and financial arena.  In Part Two, I will review the other three DIY myths that no one is talking about.

MYTH:  If I do it all myself, I will save (A TON OF) money!
ASSUMPTION:  Cost is the same as Value