Understanding Uncle Sam: Visionary or Historian?

21 Aug 2015

Our tax code is far from simple, but it does include breaks for those who employ the strategies to take advantage of them. Many people do not take full advantage of the tax code as it is written. Not only do they unnecessarily pay more in taxes than they are required, but an even greater concern is that they could be making decisions today that lead to greater taxation in the future.

There are many wonderful tax preparers. There are fewer tax planners. When considering your source of advice, ask yourself this question: “Am I working with a tax historian or with a tax visionary?”

Most people in the tax profession are what I call tax historians. They are reporting to the government what has happened. They are not looking at what could be. You need someone who has a vision for how taxation will fit into the overall financial planning picture. In my experience, you need more than someone who is simply writing what amounts to a report card that they submit, on your behalf, to the IRS.

As the tax climate changes, the need for effective planning will be at a premium. Taxes certainly aren’t going away, and I don’t think they’re going down. You’re going to need someone who understands not only the current impact of these rules and law changes but who also can anticipate any repercussions in five years or 30 years.

Learn more about the impact of tax on your financial planning in Stop Trying to Keep Up With the Joneses: They’re Broke Anyway.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Please consult with an advisor about your specific situation.

*Cornerstone Financial Strategies does not provide tax or legal services. Please consult a legal professional prior to establishing a legal document such as a trust.


Brad Berger
Brad Berger

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