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Tax Efficiency
30 Plays1 day ago
Phillip Ramsey delves into a critical yet often overlooked aspect of financial planning: tax efficiency. He contrasts the roles of CPAs as historians (archaeologists) and financial planners as future-focused (architects). Highlighting tools like eMoney and Holistaplan, Phillip explains how they aid in crafting tax-savvy financial strategies. While emphasizing that Uncommon Wealth Partners values collaboration with tax professionals, Phillip showcases how their proactive approach can better steer clients towards financial success. Discover how leveraging advanced tools and forward planning can enhance your financial future.
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Transcript
Introduction to Living Uncommonly and Achieving Dreams
00:00:00
Speaker
Everyone dreams of living an uncommon life and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast.
00:00:12
Speaker
We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
00:00:25
Speaker
Hello everybody, my name is Philip Ramsey and you're listening to Uncommon Wealth Podcast. Thanks for
Overlooked Aspects of Financial Planning
00:00:30
Speaker
listening. Today we're going to jump into a piece of financial planning that I feel like a lot of advisors tend to miss. And to be honest with you, we kind of missed it the first couple years we were in practice as well.
00:00:42
Speaker
And so let's start about giving you the history. And I feel like one of the big things that people will come ask us is things about their taxes, how to grow it efficiently, how to plan for them so they're paying as little taxes as they can. and we are always And we're no tax professionals, so we better just start with that. But we always relied on their tax person that they were working with, the accountant or the CPA.
00:01:08
Speaker
We'd always say, hey, let's revert back to them. And we continue to do that But I think the assumption is that when you are working with a CPA, they are architects and they start mapping out what's going to happen moving forward.
Proactive vs. Reactive Financial Strategies
00:01:23
Speaker
But in reality, they're more archaeologists. They're looking in the history and trying to make things the most efficiently in the past. And so we wanted to try to figure out like, how do we help our clients be more architects about what's going to happen in the future, given what has happened in the past? so Past is super powerful, we've heard that a lot, we totally agree, but in the future, that really helps us plan forward thinking and start thinking about how we can be mostly fiction most efficient in retirement and beyond, maybe even the the next generation or generations after that. So we wanna try to be more architects, not archeologists. If we were gonna lean on both, I would say we're more architects And then also it's super important to work with a CPA. I'm a huge component or an accountant in my example, but I think that's super valuable. Again, we're no tax experts.
Exploring Tax Planning Tools: eMoney and HolistaPlan
00:02:21
Speaker
And so anytime we do run a plan for somebody and we even are forward thinking about these taxes, we always like, hey, we need to consult with your CPA or your accountant before we do any of this to make sure we're all on board.
00:02:34
Speaker
So. There's a tool, there's always software all over the place. We use eMoney for financial planning and helping map out like maybe decisions that people have. It's super powerful. It's really robust and it's really technical. It gets really dialed in. So if you wanted to sneeze next week, it'll tell you how it affects your retirement account.
00:02:56
Speaker
Maybe not in that detail, but there's some there's some detail that you just, you gotta be careful with that thing. So really powerful though. And we saw that it did have some kind of tax mechanic inside the eMoney platform, but it really was missing the boat when we wanted to kind of future project different tax scenarios. And so I had a friend of mine, Tyler Conley, he's a rock star, by the way. He told me about a software called Holistoplan. And that's what we use now.
00:03:28
Speaker
And HolistaPlan is awesome. I think it's probably the number one financial planning tax tool out there currently. And then we really utilize HolistaPlan to complement eMoney to give our clients a peace of mind that we're looking at every kind of picture from a tax perspective as well as a financial planning perspective. Again, we're no tax experts, so we always will utilize their accountant, but we can be more architects when we start doing planning for purposes. So I wanted to just do a quick shout out one, HolistaPlan's great, but here's kind of the highlight reel of why we like HolistaPlan.
00:04:07
Speaker
And the first is it it you can upload your 1040, your 1120S, your 1065, and we can upload your tax return. Let's just say we can upload your tax return and it scrubs it and it actually kicks out a report that makes your tax like...
00:04:25
Speaker
All your tax paperwork, readable. When's the last time you got your tax return back from your accountant or CPA? And you're like, I'm just gonna read that baby. You don't. Well, HolistaPlan actually does and it's interesting stuff.
00:04:38
Speaker
I love that part. In fact, I did it when we first
Scenario Analysis and Roth IRA Insights
00:04:41
Speaker
got it. I just threw mine in and I was like, wow, I'm actually reading this and I'm on page four. Pretty good for Philip, you know what I'm saying? Anyway, so that first one is it makes your tax return readable.
00:04:54
Speaker
is fascinating it tells you what your tax brackets are why they are and what they are the second thing it does is it makes observations given your tax return that you just uploaded here are some strategies that you can take advantage of here are some strategies that you're just you're too high earning potentially but it kind of lists those out which is kind of nice from a tax perspective but also from a financial planning perspective say hey let's look at that what is that again what if we did a conversion here What if we did a bracket bumping, all these different keywords? It does a really good job of observing your past tax returns. So now we're archaeologists looking at past, trying to figure out kind of in the future to try to be architects, your understanding.
00:05:38
Speaker
The third thing that's super powerful is the scenario analysis. This is where we can be architects when we start thinking about your future. And like, okay, what if you you made the same amount of money last, then...
00:05:52
Speaker
last year and we wanted to be different this year what if we move this line item and that line item and move this income and that conversion and all these different things that we can kind of project of like what would that do to your to your tax bill and we can do scenarios so the third thing is scenarios it does a really good job of building out a future scenario to help you be an architect for your financial plan Okay, the other thing is it does in-depth Roth conversions. So eMoney was powerful, but it didn't really go into full detail of taxes. Well, HolistaPlan was built for taxes. We feel like it does a better job of helping us convert those roth i or IRAs into a Roth IRA, understanding what the tax bill would be closer than what we thought eMoney was doing.
00:06:39
Speaker
Not that eMoney did a bad job, but we feel like HolistaPlan just has a lot more details it's factoring in. So if your financial advisor isn't helping you with your tax, I don't know if they're helping you with your tax future, i think they're missing the boat.
Encouragement for Proactive Tax Planning
00:06:59
Speaker
And we would love to show you what that looked like here at Uncommon Wealth. Of course we would. We'd love you as a client.
00:07:04
Speaker
We want as many people as uncommon as we can get. But the truth is that I don't think a lot of ah accountants and CPAs are being proactive with people. They're more reactive. But I think our, in and I guess our assumptions is that our our tax professionals are helping us with everything. And I just haven't seen that be the case.
00:07:25
Speaker
Great people, but they got a lot in their plate. They got a lot of clients, especially the good ones, i feel like. are hard to get to and hard to get access to. So again, we love our clients here Uncommon Wealth Partners. We like to think about one, the financial plan, but two, the the tax implications of what we're we're recommending. and We feel like Holistic Plan fills that void a ton. So you've been listening Uncommon Wealth Podcast. Again, if you have any questions or you feel like you have some questions in your financial future, give us a call. Go to our website, click on...
00:07:58
Speaker
schedule call. I think it's 15 minutes. You'll actually get me. I'll call you. It'll be great. It'll be fun to get to know you. Thanks for listening. Until next time, think about your tech future because it's important.
00:08:09
Speaker
Thanks for listening.
00:08:12
Speaker
That's all for this episode brought to you by Uncommon Wealth Partners. Be sure to visit Uncommon Wealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.